IRS Forms 1098-T and 1042-S
1098-T Tax Forms
The Taxpayer Relief Act of 1997 requires that all educational institutions provide U.S. citizens or permanent residents with a tax form detailing payments made for qualifying tuition and related expenses charges for the calendar year. This form is referred to as Form 1098-T. Educational institutions are not required to provide forms to non-resident aliens, students who do not provide the institution with a Social Security Number, or when a student is registered only for courses with no academic credit. As a result, you may not receive a form under these circumstances however if you are a non-resident alien or did not provide NJCU with a Social Security Number you can request a form and NJCU will provide you with one.
Form 1098-T is administered by a third party provider, Heartland ECSI, on behalf of NJCU and will be mailed and made available on their website no later than January 31st of each year. Access ECSI's website to view and obtain a copy of your 1098-T form here. For step-by-step instructions on how to access your 1098-T form electronically, please see the “How To” section of the Office of Student Accounts website.
**Important Changes to the 2018 IRS Form 1098-T Tax Statement**
In previous years, your 1098-T included a figure in Box 2 that represented the qualified tuition and related expenses (QTRE) we billed to your student account for the calendar (tax) year. Due to a change to institutional reporting requirements under federal law, beginning with tax year 2018, we will report in Box 1 the amount of QTRE you paid during the year.
Depending on your income (or your family’s income, if you are a dependent), whether you were considered full or half-time enrolled, and the amount of your qualified educational expenses for the year, you may be eligible for a federal education tax credit. (You can find detailed information about claiming education tax credits in IRS Publication 970.
The dollar amounts reported on your Form 1098-T may assist you in completing IRS Form 8863 – the form used for calculating the education tax credits that a taxpayer may claim as part of your tax return.
New Jersey City University is unable to provide you with individual tax advice, but should you have questions, you should seek the counsel of an informed tax preparer or adviser. For more information about Form 1098-T, visit https://www.irs.gov/pub/irs-pdf/f1098t.pdf.
Please Note: In the past, New Jersey City University has provided students with Form 1098-T when amounts in Box 5, Scholarships or Grants, exceeded Box 2 even though the IRS did not require us to do so. For 2018 and subsequent tax years, if your qualified tuition and related expenses are paid entirely by scholarships and/or grants you will not be receiving Form 1098-T as specified by the IRS.
If you have any questions regarding these changes please contact the Office of Student Accounts at 201-200-3045.
Below are descriptions of certain information contained in Form 1098-T which will assist you in better understanding the form:
Box 1 – Payments received for qualifying tuition and related expenses. This amount includes payments from all sources and is reduced by any reimbursements and refunds the student received relating to payments of qualified tuition and related expenses. This box will include payments of past-due qualified tuition and related expenses from a previous calendar year if the student was billed for these charges.
Box 4 – Reimbursements or refunds of qualified tuition and related expenses made in the current year that relate to payments received that were reported for any prior year
Box 5 - Total amount of any scholarships or grants that were administered and processed during the calendar year for the payment of the student's costs of attendance.
Box 6 – Amounts of any reduction to the amount of scholarships or grants that were reported for any prior year.
Box 7 - Amounts billed for qualified tuition and related expenses, reported on the current year’s form, but are related to an academic period that begins in January through March of the following year.
Box 8 – If checked, the student was at least a half-time student during any academic period. A half-time student is a student enrolled for at least half the full-time academic workload for the course of study the student is pursuing.
Box 9 – If checked, 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.
For additional information and instructions on Form 1098-T, please see IRS Publication 970 or www.IRS.gov.
Form 1042-S reports calendar-year income earned by non-resident aliens. For U.S. tax purposes, all University non-tuition scholarships that are subject to withholding will be reported, even if no amount is deducted or withheld due to an income tax treaty at the time of filing.
Those students who are subject to a withholding (residents of a non-treaty country), will be assessed a non-resident alien tax each semester. The amount assessed is based on the current tax rate (14%) of the scholarship award for that semester.
Federal guidelines require the College to file Form 1042-S to the recipient no later than March 15th of each year. Active students will be sent Form 1042-S to the current local address on file with the University, while former students will receive the form at the most current foreign address on file.