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Tuition Statement Changes in Place for 2016

Question:

My daughter is in college. I heard that Form 1098-T for 2016 may report college tuition differently. Is this true?

Answer:

The IRS has released the new 1098-T with several changes for 2016. According to the 2016 IRS instructions, institutions may no longer report the amounts billed for qualified tuition and related expenses, previously shown in box 2 of form 1098-T. Public Law 114-113, Division Q, section 212, now requires institutions to report only the amounts actually paid for qualified tuition.

Additionally, a new box has been added to the Student’s taxpayer identification box. According to the IRS, this box must be checked by the issuing educational institution “under penalty of perjury that you have complied with the standards promulgated by the secretary for obtaining the student’s TIN.”

The PATH Act of 2015 included this required change for 1098-T reporting.

***Update: The IRS issued Announcement 2016-17 on April 27, 2016, providing a limited penalty relief. Filers of Form 1098-T for 2016 may still report the amount billed for qualified tuition, rather than the payments received. This penalty relief does not apply to 2017 or beyond. 

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