Tuition Payments Statement

2012

Department of the Treasury
Internal Revenue Service

Instructions for Forms
1098-E and 1098-T
Section references are to the Internal Revenue Code unless
otherwise noted.

What’s New
Truncating recipient’s identification number on paper
payee statements. Notice 2011-38 allows all filers of
this form to truncate a recipient’s identification number
(social security number (SSN), individual taxpayer
identification number (ITIN), or adoption taxpayer
identification number (ATIN)) on paper payee statements
for tax years 2011 and 2012. See part M in the 2012
General Instructions for Certain Information Returns.

Reminders
General instructions. In addition to these specific
instructions, you should also use the 2012 General
Instructions for Certain Information Returns. Those
general instructions include information about the
following topics.
• Backup withholding.
• Electronic reporting requirements.
• Penalties.
• Who must file (nominee/middleman).
• When and where to file.
• Taxpayer identification numbers.
• Statements to recipients.
• Corrected and void returns.
• Other general topics.
You can get the general instructions at IRS.gov or by
calling 1-800-TAX-FORM (1-800-829-3676).
How to get the latest information. If there are changes
to the 2012 tax law that affect Forms 1098-E and 1098-T,
you will be able to find them at www.irs.gov/form1098e
and www.irs.gov/form1098t.
Form W-9S. You may use Form W-9S, Request for
Student’s or Borrower’s Taxpayer Identification Number
and Certification, to obtain the student’s or borrower’s
name, address, taxpayer identification number, and
student loan certification to be used when filing Form
1098-E or 1098-T. Use of Form W-9S is optional; you
may collect the information using your own forms, such
as financial aid applications, and procedures. You may
collect the student’s or borrower’s information on paper
or electronically.
Electronic submission of Form W-9S. An
educational institution, insurer, or lender may establish a
system for students and borrowers to submit Form W-9S
electronically, including by fax. Generally, the electronic
system must:
1. Ensure the information received is the information
sent and document all occasions of user access that
result in the submission,
2. Make reasonably certain the person accessing the
system and submitting the form is the person identified
on Form W-9S,
Oct 27, 2011

3. Provide you with the same information as the paper
Form W-9S, and
4. Be able to supply a hard copy of the electronic
Form W-9S if the Internal Revenue Service requests it.
Also, if an electronic Form W-9S is used to obtain the
borrower’s certification that all the loan proceeds are
used solely to pay qualified higher education expenses,
your electronic system must require, as the final entry in
the submission, an electronic signature by the borrower
whose name is on Form W-9S. The signature
authenticates and verifies the submission. See
Announcement 98-27, which is on page 30 of Internal
Revenue Bulletin 1998-15 at www.irs.gov/pub/irs-irbs/
irb98-15.pdf.
Electronic reporting. For Forms 1098-E and 1098-T,
you must file electronically if you are required to file 250
or more returns. See part F in the 2012 General
Instructions for Certain Information Returns for more
information.
Penalties. For Forms 1098-E and 1098-T, penalties
may be imposed for failure to file or failure to furnish
correct forms. However, under certain circumstances, the
penalties may be waived. See part O in the 2012 General
Instructions for Certain Information Returns for more
information.

Specific Instructions for Form 1098-E
File Form 1098-E, Student Loan Interest Statement, if
you receive student loan interest of $600 or more from an
individual during the year in the course of your trade or
business.
The $600 threshold applies to each borrower
regardless of the number of student loans obtained by
that borrower. However, you may file a separate Form
1098-E for each student loan of the borrower, or you may
file one Form 1098-E for the interest from all student
loans of the borrower.
Who must file. File Form 1098-E if you are a financial
institution, governmental unit (or any of its subsidiary
agencies), educational institution, or any other person
who receives student loan interest of $600 or more from
an individual during the year in the course of your trade
or business.
If more than one person has a connection with the
loan, only the first person to receive the interest payment
must file Form 1098-E. For example, a loan service or
collection agent receiving payments on behalf of the
lender must file.
Qualified student loan. To be reportable for 2012, a
student loan must be either:
• Subsidized, guaranteed, financed, or otherwise treated
as a student loan under a program of the Federal, state,
or local government, or of a postsecondary educational
institution, or

Cat. No. 27990J

• Certified by the borrower as a student loan incurred

• Students whose qualified tuition and related expenses

solely to pay qualified higher education expenses. You
may use Form W-9S to obtain the certification.
Revolving accounts. Report interest paid on revolving
accounts, such as credit card accounts, only if the
borrower certifies that all the loan proceeds are solely
used to pay qualified higher education expenses. You do
not have to verify the borrower’s actual use of the funds.
Do not report interest on mixed use loans.
Loans under qualified plans. Do not report interest on
loans made under a qualified employer plan, as defined
in section 72(p)(4), or under a contract purchased under
a qualified employer plan within the meaning of section
72(p)(5).
Additional information. For more information about
reporting student loan interest, see Regulations section
1.6050S-3.
Statements to borrowers. If you are required to file
Form 1098-E, you must provide a statement or
acceptable substitute, on paper or electronically, to the
borrower. For more information about the requirements to
furnish a statement to the borrower, see part M in the
2012 General Instructions for Certain Information
Returns.
Recipient’s/lender’s name, address, and telephone
number box. Enter the name, address, and telephone
number of the filer of Form 1098-E. Use this same name
and address on Form 1096, Annual Summary and
Transmittal of U.S. Information Returns.
Account number. The account number is required if
you have multiple accounts for a recipient for whom you
are filing more than one Form 1098-E. Additionally, the
IRS encourages you to designate an account number for
all Forms 1098-E that you file. See part L in the 2012
General Instructions for Certain Information Returns.

are entirely waived or paid entirely with scholarships; and
• Students for whom you do not maintain a separate
financial account and whose qualified tuition and related
expenses are covered by a formal billing arrangement
between an institution and the student’s employer or a
governmental entity, such as the Department of Veterans
Affairs or the Department of Defense.
Who must file. You must file Form 1098-T if you are an
eligible educational institution. An eligible educational
institution that is a governmental unit, or an agency or
instrumentality of a governmental unit, is subject to the
reporting requirements of Form 1098-T. A designated
officer or employee of the governmental entity must
satisfy the reporting requirements of Form 1098-T.
Eligible educational institutions may choose to report
payments received, or amounts billed, for qualified tuition
and related expenses. The eligible educational institution
must use the same reporting method for all calendar
years unless the IRS grants permission to change the
reporting method. For information on how to obtain
automatic consent to change your reporting method, see
the instructions for box 3 on page 3.
If another person receives or collects payments of
qualified tuition and related expenses on your behalf, the
other person must file Form 1098-T. However, if the other
person does not possess the information necessary to
comply with the reporting requirements of Form 1098-T,
then you must satisfy the reporting requirements of Form
1098-T.
Also, if you are an insurer engaged in a trade or
business of making refunds or reimbursements of
qualified tuition and related expenses, you are required to
file Form 1098-T. See the instructions for box 10 on page
3.
Eligible educational institution. An eligible
educational institution is a college, university, vocational
school, or other postsecondary educational institution
that is described in section 481 of the Higher Education
Act of 1965 as in effect on August 5, 1997, and that is
eligible to participate in the Department of Education’s
student aid programs. This includes most accredited
public, nonprofit, and private postsecondary institutions.
Qualified tuition and related expenses. Qualified
tuition and related expenses are tuition, fees, and course
materials required for a student to be enrolled at or
attend an eligible educational institution.
The following are not qualified tuition and related
expenses.
• Amounts paid for any course or other education
involving sports, games, or hobbies, unless the course or
other education is part of the student’s degree program
or is taken to acquire or improve job skills.
• Charges and fees for room, board, insurance, medical
expenses (including student health fees), transportation,
and similar personal, living, or family expenses.
Academic credit. Academic credit is credit awarded by
an eligible educational institution for the completion of
course work leading to a postsecondary degree,
certificate, or other recognized postsecondary
educational credential.
Example. Student A, a medical doctor, takes a
course at University X’s medical school. Student A takes
the course to fulfill State Y’s licensing requirement that
medical doctors attend continuing medical education

Box 1. Student Loan Interest Received by
Lender
Enter the interest you received on a student loan(s)
during the calendar year. For loans made on or after
September 1, 2004, you are required to include in box 1
payments of interest as described in Regulations section
1.221-1(f). Under that regulation, interest includes
capitalized interest and loan origination fees that
represent charges for the use or forbearance of money.
See Regulations section 1.221-1(f).

Box 2. Checkbox
Check this box if loan origination fees and/or capitalized
interest are not reported in box 1 for loans made before
September 1, 2004.

Specific Instructions for Form 1098-T
File Form 1098-T, Tuition Statement, if you are an
eligible educational institution. You must file for each
student you enroll and for whom a reportable transaction
is made. Also, if you are an insurer, file Form 1098-T for
each individual to whom you made reimbursements or
refunds of qualified tuition and related expenses.
Exceptions. You do not have to file Form 1098-T or
furnish a statement for:
• Courses for which no academic credit is offered, even
if the student is otherwise enrolled in a degree program;
• Nonresident alien students, unless requested by the
student;
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Instructions for Forms 1098-E and 1098-T (2012)

courses each year. Student A is not enrolled in a degree
program at University X and takes the medical course
through University X’s continuing professional education
program. University X does not award Student A credit
toward a postsecondary degree on an academic
transcript for the completion of the course but gives
Student A a certificate of attendance upon completion.
University X is not required to file Form 1098-T for the
course taken by Student A.

Account number. The account number is required if
you have multiple accounts for a recipient for whom you
are filing more than one Form 1098-T. Additionally, the
IRS encourages you to designate an account number for
all Forms 1098-T that you file. See part L in the 2012
General Instructions for Certain Information Returns.

Academic period. You must file Form 1098-T for each
student who is enrolled in your institution for any
academic period (for example, semester, trimester, or
quarter) in 2012. Determine your enrollment for each
period under your own rules or use one of the following
dates.
• 30 days after the first day of the academic period.
• A date during the period when enrollment data must be
collected for purposes of the Integrated Postsecondary
Education Data System administered by the Department
of Education.
• A date during the period when you must report
enrollment data to the state, to your governing board, or
to some other external governing body.

If you use this method of reporting, enter the total amount
of payments received for qualified tuition and related
expenses from all sources during the calendar year. The
amount reported is the total amount of payments
received less any reimbursements or refunds made
during the calendar year that relate to the payments
received for qualified tuition and related expenses during
the same calendar year. The amount reported is not
reduced by scholarships and grants reported in box 5.

Box 1. Payments Received for Qualified
Tuition and Related Expenses

Box 2. Amounts Billed for Qualified Tuition
and Related Expenses
If you use this method of reporting, enter the amounts
billed during the calendar year for qualified tuition and
related expenses. The amount reported is the total
amount billed less any reductions in charges made
during the calendar year that relate to the amounts billed
for qualified tuition and related expenses during the same
calendar year. The amount reported is not reduced by
scholarships and grants reported in box 5.

Additional information. For more information about
reporting on Form 1098-T, see Regulations section
1.6050S-1. Also see Notice 2006-72, 2006-36 I.R.B. 363,
available at www.irs.gov/irb/2006-36_IRB/ar10.html for
guidance in a question and answer format on the
information reporting requirements for Form 1098-T.

Box 3. Checkbox for Change of Reporting
Method

Statements to students. If you are required to file Form
1098-T, you must provide a statement or acceptable
substitute, on paper or electronically, to the student.

Check this box if you have changed your method of
reporting (payments received or amounts billed). You
have changed your method if the method you are using
for 2012 is different than the method you used for 2011.
In general, you must make a written submission to the
IRS at least 3 months before the due date of the returns
for the year of the change. To change your method of
reporting for 2012, you must make the submission no
later than November 28, 2012, if you file your returns on
paper (or January 2, 2013, if you file electronically). For
additional requirements, see Rev. Proc. 2005-50,
2005-32 I.R.B. 272 available at www.irs.gov/irb/
2005-32_IRB/ar16.html.

Electronic delivery of Form 1098-T. Educational
institutions may present the option to consent to receive
Form 1098-T electronically as part of a global “Consent
To Do Business Electronically,” combining consent for
electronic delivery of Form 1098-T along with other
institutional student business functions such as
admissions, registration, billings, and direct deposits.
The global consent process must meet all the consent,
disclosure, format, notice, and access period
requirements for electronic furnishing of Forms 1098-T as
required by paragraphs (a)(2) through (6) of Treasury
Regulations 1.6050S-2. For more information about the
requirements to furnish a statement to each student, see
part M in the 2012 General Instructions for Certain
Information Returns.

Box 4. Adjustments Made for a Prior Year
Payments received. Enter reimbursements or refunds
of qualified tuition and related expenses made during the
calendar year that relate to payments received that were
reported for any prior year after 2002.
Amounts billed. Enter any reductions in charges made
for qualified tuition and related expenses made during the
calendar year that relate to amounts billed that were
reported for any prior year after 2002.

Student’s address. In the student’s address box of
Form 1098-T, enter the student’s permanent address.
That is, enter the student’s home or other long-term
address where he or she can receive forwarded mail.
You may use a temporary address only if you do not
know the permanent address.
Information contact and service provider. You must
provide your name, address, and telephone number. In
addition, you may include information on a third-party
service provider who filed the form or who may answer
questions about the statement. Enter the service
provider’s information in the box below the student’s
name and address.

Box 5. Scholarships or Grants
Enter the total amount of any scholarships or grants that
you administered and processed during the calendar
year for the payment of the student’s costs of attendance.
Scholarships and grants generally include all payments
received from 3rd parties (excluding family members and
loan proceeds). This includes payments received from
governmental and private entities such as the
Department of Defense, civic, and religious
organizations, and nonprofit entities. However, see
Exceptions on page 2.

You must provide the telephone number for the
information contact at the institution. Generally
CAUTION this is an administrative office or department. Do
not provide the institution’s general telephone number.

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Instructions for Forms 1098-E and 1098-T (2012)

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the student is pursuing. Your institution’s standard for a
half-time student work load must equal or exceed the
standards established by the Department of Education
under the Higher Education Act and set forth in 34 C.F.R.
section 674.2(b).

Box 6. Adjustments to Scholarships or
Grants for a Prior Year
Enter the amount of any reduction to the amount of
scholarships or grants that were reported for any prior
year after 2002.

Box 9. Check if a Graduate Student

Box 7. Checkbox for Amounts for an
Academic Period Beginning in January
through March of 2013

Check this box if the student was a graduate student.
The student is a graduate student if the student was
enrolled in a program or programs leading to a
graduate-level degree, graduate-level certificate, or other
recognized graduate-level educational credential.

Check this box if any payments received, or amounts
billed, for qualified tuition and related expenses reported
for 2012 relate to an academic period that begins in
January through March of 2013.

Box 10. Insurance Contract
Reimbursements or Refunds

Box 8. Check if at Least Half-Time Student

If you are an insurer, enter the total amount of
reimbursements or refunds of qualified tuition and related
expenses that you made to the student during 2012.

Check this box if the student was at least a half-time
student during any academic period that began in 2012.
A half-time student is a student enrolled for at least half
the full-time academic workload for the course of study

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Instructions for Forms 1098-E and 1098-T (2012)