Why did I receive a 1098-T form? Am I eligible to claim a tax credit?
UT Dallas, as an eligible educational institution, is required by the Internal Revenue Service (IRS) to issue an annual IRS Form 1098-T – Tuition Statement to certain eligible students. You received a 1098-T form because our records show you were enrolled in credit courses at UT Dallas and paid qualified tuition and related expenses to UT Dallas in the tax year in question. UT Dallas uses the “paid” tax reporting method, which means the University will produce a 1098-T form based on the amount of paid qualified tuition and related expenses.
Whether or not you may use Form 1098-T to take advantage of federal education tax credits depends upon your individual facts and circumstances. The University of Texas at Dallas cannot provide individual tax filing advice, so you may want to consult a tax professional to find out more about education tax credits and your eligibility to claim the credits. For more information, visit IRS Publication 970 – Tax Benefits for Higher Education. Please note that nonresident aliens for tax purposes cannot claim any education tax credits on their federal individual income tax return.
1098-T forms will be generated for students who have a valid Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) on file with the Office of the Registrar, and who have paid qualified tuition and related expenses in the tax year in question. If you do not have a SSN or ITIN on file with the University, a 1098-T form will not automatically be generated for you. If you would like to obtain a 1098-T form, you will need to submit a SSN Change Request Form and copies of your student ID card and social security card to [email protected].
UT Dallas changed our 1098-T form provider for 2017. 1098-T forms are now available through the Heartland ECSI website. Prior year 1098-T forms will eventually be available through this website as well. If you are unable to retrieve a 1098-T form through this website, please email [email protected] to request a 1098-T form.
In certain situations, a 1098-T form may not have been generated for you:
If these situations do not apply to you, a 1098-T form should have been generated and mailed to your home address listed in the Galaxy portal. For assistance, please email the Bursar Office at [email protected].
A scholarship is an amount paid or allowed to, or for the benefit of, a student, whether an undergraduate or graduate, to aid such individual in pursuing his studies. A fellowship is an amount paid or allowed to, or for the benefit of, an individual to aid him in the pursuit of study or research.
A scholarship or fellowship payment received by a candidate for a degree at UT Dallas is generally not taxable income to the student if it is used for “qualified education expenses.” Qualified education expenses are defined by the Internal Revenue Service (IRS) and are amounts paid for tuition, fees, and other related expenses for a student that are required for attendance at UT Dallas. Generally speaking, “qualified education expenses” are those amounts for which UT Dallas must receive payment before allowing the student to enroll in classes.
A scholarship or fellowship used for expenses other than “qualified education expenses” is a nonqualified scholarship or fellowship, which is taxable income to the student. If a part of the scholarship or fellowship has been used for nonqualified education expenses, this portion of the scholarship or fellowship is considered a nonqualified scholarship or fellowship and is subject to income tax.
Some examples of nonqualified education expense are:
For U.S. citizens, lawful permanent residents (Green Card holders), and resident aliens for tax purposes, a nonqualified scholarship or fellowship is self-reported on the annual income tax return. UT Dallas is not required to report nonqualified scholarship and fellowship amounts on a Form 1099 or other tax reporting document and federal income tax is not withheld on the nonqualified scholarship and fellowship payments. It is the responsibility of the student to keep the necessary records to report the nonqualified scholarship and fellowship amounts on the student’s individual income tax return. It is advised that the students contact their tax advisor regarding the self-reporting and tax consequences.
The scholarship or fellowship recipient who is a nonresident alien student will be contacted by the Tax Compliance Office after the Census day to complete the required tax compliance process. The tax compliance process analyzes the student’s tax residency status, tax withholding rate, eligibility for tax treaty benefits, and generates necessary tax forms for the student to sign. Once the student completes the tax compliance process, the Tax Compliance Office will post a charge called “Non Resident Tax” to the student’s Bursar account to reflect the applicable federal income tax withholding amount.
A nonresident alien student is subject to federal income tax withholding for a nonqualified scholarship or fellowship if:
A nonresident alien student is exempt from federal income tax withholding for a nonqualified scholarship or fellowship if:
A nonqualified scholarship or fellowship is subject to federal income tax withholding at a rate of 14% for nonresident aliens for tax purposes under a J-1 or F-1 visa. For nonresident aliens for tax purposes under any other type of visa, a nonqualified scholarship or fellowship is subject to federal income tax withholding at a rate of 30%. UT Dallas is required to report nonqualified scholarship and fellowship amounts received by a nonresident alien for tax purposes on Form 1042-S.
IRS Free File is a free online software program available on IRS.gov that taxpayers can use to prepare and file federal individual income tax returns for free using tax-preparation-and-filing software.
IRS Free File has two options: 1) Free File Software, and 2) Free File Fillable Forms. Use Free File Software if your income is $69,000 or less and Free File Fillable Forms if your income is greater than $69,000.
Please note that nonresident aliens for tax purposes cannot use IRS Free File Software or Free File Fillable Forms. Please go to the International Center’s Tax website for information about how to file a federal individual income tax return as a nonresident alien for tax purposes.
Free File Software (Income $69,000 and below):
Free File features 10 brand-name tax software providers who are in a partnership with the IRS to offer their online products for free. Each provider sets additional eligibility requirements, generally based on age, state residency and income.
Here’s how Free File works:
Free File Fillable Forms (Income above $69,000):
If your income is more than $69,000, you can use Free File Fillable Forms, a free forms-based tool enabling you to select your income tax forms, enter your tax information, print and e-file your federal income tax return. Free File Fillable Forms is best for those taxpayers experienced in preparing returns by hand and with limited assistance. If you’re not comfortable completing a paper return by hand, without software to guide you, you should consider another method of filing your income tax return. To access Free File Fillable Forms, please go to the IRS’s Fillable Forms website.
Please note UT Dallas and the IRS do not endorse any individual Free File company or retain any taxpayer information entered on the Free File site. UT Dallas cannot provide individual tax filing advice, and recommends consulting with a tax professional for specific tax questions and assistance.
The Volunteer Income Tax Assistance (VITA) program offers free tax help to people who generally make $58,000 or less, persons with disabilities, and limited English speaking taxpayers who need assistance in preparing their own income tax returns. IRS-certified volunteers provide free basic income tax return preparation with electronic filing to qualified individuals.
The 2020 Volunteer Income Tax Assistance program will not be held on UT Dallas campus. The program will be held off campus at the Assistance Center of Collin County. Here is the location information as well as the hours of operation:
Assistance Center of Collin County
900 18th Street, Plano, Texas 75074
Hours: Mon-Thurs 1-5PM; Sat 9AM-12PM
Individuals and families who make up to $58,000 annually and are interested in having their tax returns prepared for free, which will include the 1040NR for nonresident aliens, will need to make an appointment. The Assistance Center does not accept walk-ins.
To make an appointment to have your tax return prepared, please call 214-370-9353 or use the Assistance Center’s scheduling system.
UT Dallas is not sponsoring this service. All questions specifically regarding the VITA program or the tax preparation services provided should be directed to 214-370-9353 or visit the Foundation Communities’ website.
What to Bring
The following items are needed in order for VITA volunteers to prepare your tax return. Please take a moment to browse through the list and make sure that you gather all the necessary paperwork before you come. This is a general list; so if you have any other paperwork that you think is pertinent, please bring them with you to the VITA center.
Items listed in bold are required.
Nice to have items:
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