In 1997, Congress passed the Tax Payer Relief Act, which included provisions for the Hope Scholarship Credit and the Lifetime Learning Credit. Both credits allow certain taxpayers who have incurred qualified expenses for higher education to take a credit against their federal income tax liability. The following is general information only and should not be taken as tax advice; please contact the IRS or a tax professional. The College cannot provide assistance regarding your eligibility or the calculation of the credit. The following web sites have additional information that may be useful.
- IRS Publication 970
- IRS Tax Information for Students
- IRS Form 8863 to claim education tax credits (PDF)
- Procedures for Viewing 1098-T’s on your MyPalomar Account
IRS Form 1098-T will be available on your MyPalomar account by January 31.
1098-T Frequently Asked Questions
The information listed below is offered as a guide for students and is not intended to provide professional tax advice. If you have questions or need further assistance you may wish to contact your tax adviser or the Internal Revenue Service (IRS).
What is an IRS Form 1098-T?
- The IRS Form 1098-T is used by eligible educational institutions to report information about their students to the IRS as required by the Taxpayer Relief Act of 1997.
- Information reported includes qualified tuition and related expenses, as well as scholarships and/or grants, taxable or not.
- Also included are student demographics including the student’s name, address, individual taxpayer identification number (ITIN) or Social Security Number (SSN), and enrollment and academic status.
Beginning in tax year 2003, An IRS Form1098-T must also be provided to each eligible student.
When will my 1098-T be available on eServices:
- For Tax Year 2020, IRS Form 1098-T’s will be available online beginning January 31, 2020. After January 31, if you are unable to print one online for tax year 2020, or a previous tax year please contact Palomar College Cashier’s office at email@example.com.
- Please note that we do not fax or email 1098-T’s. You can print them online via your MyPalomar account or one can be mailed, by request, to the address on file at the time the 1098-T was generated. I
What educational expenses are considered Qualified Tuition and Related Expenses?
- Qualified Tuition and Related Expenses or QTRE (reported in Box 1, IRS Form 1098-T) includes tuition and fees required for enrollment or attendance at an eligible educational institution.
- Books and supply charges required to be paid to the institution. This does not include books or supplies where the student has a choice where they are purchased.
- QTRE does not include room and board, student activities, athletics (unless the course is part of the degree program), insurance, equipment, transportation, or other similar personal, living or family expenses.
For more information please go to https://www.irs.gov/forms-pubs/form-1098-t-tuition-statement
Is this a bill?
- No, this is not a bill nor a request for payment.
Is this form a source of income that I must include on my tax forms?
- No, this form is a statement of the amount of eligible payments received by Palomar Community College District and/or Financial Aid disbursed during Tax Year 2020.
How do I access the 1098-T through my MyPalomar account?
- Instructions on how to access your 1098-T can be found here.
How is the amount in Box 1 determined?
- The amount is calculated by identifying eligible fees that were paid to Palomar Community College District during tax year 2020. Tax year 2020 includes January 1, 2020 thru December 31, 2020.
- Enter the total amount of payments received for qualified tuition and related expenses from all sources during the calendar year.
- The amount in Box 1 is not based on the date of the “term” but when the payment was posted to your student account. Example: Payments made in December 2020 for the Spring 2021 term will be included in your 2020 IRS Form 1098-T.
How is the amount in Box 5 determined?
- By calculating the total amount of any scholarships or grants that Palomar Community College District administered and processed during the tax (calendar) year for the payment of the student’s costs of attendance.
- Scholarships and grants generally include all payments received from third parties (excluding family members and loan proceeds).
- This includes payments received from governmental and private entities such as the Department of Veterans Affairs, the Department of Defense, civic and religious organizations, and nonprofit entities. However, some exceptions apply. See IRS Form 1098-T rules or consult your tax adviser for further information.
- Emergency COVID-19 Grants- including HEERF CARES Grant- are not included in Box 5 in the 1098-T as they are considered qualified disaster relief payments by the IRS.
Main reasons why you may not have a 1098-T available on eServices (MyPalomar)?
- The amount of Financial Aid or Waivers you received were more than the amount of eligible expenses you paid for out of pocket.
- You have no reportable information for Tax Year 2020.
- You do not have a current active or valid address on file
- If 3rd party payments received are greater than eligible fees, a 1098-T may not be generated. Some examples of 3rd party payments would be: Promise, Veterans Chapter 33, Dept. of Rehab, Marine, and Navy.
Who do I contact if I think the information is incorrect?
Palomar College Cashier’s Office
Building A-2, San Marcos Campus
760-744-1150 ext. 2114