1098-T Tax Reporting Information

Included in Form 1098-T are the following financial transactions posted to students’ accounts in the calendar year:

Box 1 – Payments Received

The total in Box 1 includes all payments received by Babson College in the calendar year that pay for Qualified Tuition and Related Expenses (QTRE), as defined by the IRS. This includes payments from students and families, advance deposits, loans, scholarships, grants, and third-party sponsor payments. Only the portion of the payments applied to QTRE is reported in Box 1.

Box 2 – Amounts Billed

Since tax year 2018, Babson College has been reporting, in Box 1, the amount you paid during the year for qualified tuition and related expenses (QTRE). Box 2 will be blank.

Box 4 – Adjustments to a Prior Year

Box 4 reports adjustments including changes made to items originally reported in a prior calendar year. The amount reported in Box 4 represents a reduction in tuition billed during a prior calendar year.

Box 5 – Scholarships or Grants

Box 5 includes scholarships, grants, and payments from a corporate or government sponsor. Per IRS regulations, Box 5 includes any payments made by someone other than the student or family.

Box 6 – Adjustments to Scholarships or Grants for a Prior Year

Box 6 reflects reductions in scholarships and grants reported for a prior year.

Box 7 – Checkbox for Amounts for an Academic Period Beginning in January Through March

Box 7 is checked if any payment received for QTRE reported for the current 1098-T period relate to an academic period that begins in January through March of the next calendar year.

Box 8 – Check if at Least Half-Time Student

Box 8 is checked if the student is at least half-time during any academic period during the 1098-T reporting period.

The IRS defines QTRE as items directly related to a student’s education. QTRE includes tuition and mandatory fees. The IRS does not consider the following items to be related directly to the student’s education: room/housing, board/dining, health insurance charges, charges and fees covering travel and related expenses.

The student must have taken classes for academic credit in any term that began during the calendar year. In addition, the student’s account must have had payments or financial aid awards posted in the calendar year that was applied to qualified tuition and related expenses.

Maintain it for your personal records and share the 1098-T with your tax preparer for assistance in determining your eligibility for certain tax credits.

There are many details surrounding tax credits. Please contact a tax professional to determine if you qualify for these benefits. Babson College cannot provide tax advice.

• IRS Publication 970: Tax Benefits for Higher Education (pdf)
• American Opportunity (Hope)/Lifetime Learning Tax Credits Form 8863: Education Credits (pdf)
• Instructions for Forms 1098-E and 1098-T (pdf)
• IRS Tax Information for Students

Students can retrieve their 1098-T (current and historic) in Workday under “My Account” in the Finance Section. Third Parties do not have access to their student’s 1098-T.

Students can use the “Manage Paperless 1098-T” task in Workday to change their consent to only receive an electronic 1098-T. Students can always access copies of their 1098-T in Workday and print paper copies on demand.

Babson College cannot produce a 1098-T form for a student without a valid Social Security Number (SSN) or Individual Tax Identification Number (ITIN) on file. To update your SSN or ITIN, please Log in to Workday and enter “Change my Government IDs” in the search bar, then add your SSN or ITIN in the National IDs section (select USA for country, then select a National ID type). The issued and expiration dates can remain blank. If you prefer, you may instead complete a W-9S form and return it by mail to Student Financial Services.