Change in Form 1098-T Reporting in New Omnibus Law

There is a provision in the tax portion of the Omnibus law that has a potentially problematic change for 1098-T reporting for colleges and universities.  Beginning with the 2016 tax year, institutions will be required to report payments for qualified tuition and related expenses in Box 1 of IRS Form 1098-T.  There will no longer be an option to report amounts billed for qualified expenses in Box 2.

Unfortunately, a college’s calculation of payments for qualified tuition and related expenses on Form 1098-T might not be the same as amounts taxpayers claim on their tax returns.  This discrepancy may be the result of several factors, including the timing of payments and application of funds.
 
NAICU will be working with the higher education community in both the regulatory and legislative process to try to address this new change.

For more information, please contact:
Karin Johns