Notice to all students

Official notification of tax credit reporting requirements

The Taxpayer Relief Act of 1997 allows taxpayers who pay qualified tuition and related fees for post secondary education to claim a credit against their federal income tax liability. The first year that the tax credit can be claimed is for tax-year 1998. As part of this legislation, Congress is requiring colleges and universities to report information to the IRS on all enrolled students for tax-year 1998. To comply with the “Student Right To Know” this information provided to the IRS must also be provided to the student. To meet these requirements, MUSC will file IRS Form 1098-T, Tuition Payment Statement, for each student enrolled during 1998.

Form 1098-T will meet the above requirements and will be:

1. Provided to students by MUSC no later than Feb. 1, 1999.

2. Provided to the Internal Revenue Service by MUSC no later than March 1, 1999.

For 1998, Form 1098-T will include the following information:

1. Name, address and federal identification number for MUSC.

2. Name, address and social security number for each student.

3. Enrollment indicators including at least half-time enrollment and exclusive program enrollments that lead to a graduate degree, certificate, or other graduate credential.

For tax year 1998, the IRS is not requiring institutions to report the actual payments of qualified tuition, fees, reimbursements, and refunds. However, to better serve its students, MUSC will provide this financial information to each student on a supplementary statement that will accompany Form 1098-T.

Students have the responsibility to provide a correct social security number to the institution in order to meet reporting requirements to qualify for the tax credit. The IRS imposes a $50 penalty for noncompliance. Form 1098-T will be sent to the permanent address listed on the student data-base system. However, if the enrolled student is not the taxpayer qualified for the tax credit, Substitute Form W-9S, Request for Student’s Social Security Number, must be completed to ensure that Form 1098-T and the supplemental statement are mailed to the qualified taxpayer. Forms are available in the Admin/Library Room 203.

Students are encouraged to consult a personal tax advisor to take full advantage of the new tax credits. Additional information on educational tax incentives is available by contacting the IRS at 1-800-829-1040 or by researching IRS Publication 970, Tax Benefits for Higher Education at http://www.irs.ustreas.gov/prod/forms_pubs/pubs.html.

If you have any questions about the supplementary statement received with Form 1098-T, please contact Tina Chapman in the Office of Student Accounting at (843) 792-2170 or send correspondence to e-mail address studacct@musc.edu.

Information provided by: Division of Finance and Administration, Wendy Pierce and Robyn Frampton; Office of Student Financial Aid, Pearl Givens; Office of Enrollment Services, Jim Menzel; Office of Student Accounting, Tina Chapman & Kirk Kilgore

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