2003 reporting requirements
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WELCOME TO TODAY’S WEBCAST 1098-T Reporting POSITIONING YOUR INSTITUTION FOR FULL FINANCIAL REPORTING 1:30 pm EDT AGENDA ž ž ž ž ž ž Introduction Overview of Desktop Tools Presentation Audience Survey Question & Answer Evaluation INTRODUCTION Mark Olson Executive Vice President, Chief Operating Officer - NACUBO RESOUND DESKTOP FOR LIVE PROGRAMS WITH QUICK QUESTION DESKTOP INTERFACE Element Toolbar Media Player Element Display Quick Question Primary Toolbar QUESTIONS TO THE PRESENTER ¦ ¦ ¦ Select “Presenter” from the Quick Question dropdown. Type your question. Click on Submit. To send a different question, click on the Presenter button and then click on Retract. This action will clear the Presenter question in the queue. QUESTIONS TO THE ONLINE EXPERTS ¦ ¦ ¦ Select “Expert” from the Quick Question dropdown. Type your question. Click on Submit. The Online Experts InBox button will illuminate when you receive a response. To view the answer to your question, click on this button and then select “Answered Questions.” REVIEWING ELEMENTS ¦ To review elements, use the Review and Preview buttons in the Element toolbar. ¦ Click on the Sync button to rejoin the presenter. NOTE: This button appears “unplugged” if you are not synchronized with the presenter. BUFFERING ¦ If you experience sustained periods of buffering, click on the Speed button and select a lower stream rate. ¦ Contact the helpdesk. 1098-T REPORTING POSITIONING YOUR INSTITUTION FOR FULL FINANCIAL REPORTING JOHN HARABEDIAN RUTGERS UNIVERSITY BARBARA WARREN JOHNS HOPKINS UNIVERSITY Topic 1 HOPE SCHOLARSHIP TAX CREDIT ¦ $1,500 tax credit per student (indexed for inflation beginning in 2002) ¦ Applies to the first two years of post-secondary education ¦ Student must be enrolled in a degree program HOPE SCHOLARSHIP TAX CREDIT ¦ Students must meet at least half-time requirement ¦ Tax credit can be claimed by the student or parent LIFETIME LEARNING TAX CREDIT ¦ 20% of first $10,000 of expenses ¦ $2,000 maximum credit per family (increased for 2003) ¦ Must acquire or improve job skills ¦ Applies to credit & noncredit courses TAX CREDIT LIMITATIONS ¦ Only claim 1 credit per student ¦ Credits are phased out for adjusted gross income over: ž ž Single: $41,000-$51,000 Married: $82,000-$102,000 ¦ Nonresident aliens are not eligible for credit ¦ Married filing separate returns are not eligible for credit TAX CREDIT DEFINITIONS ¦ IRC section #25A ¦ Qualified tuition and related expenses (QTRE) ¦ First 2 years of post secondary education ¦ Prepayment exception ¦ Reductions of qualified tuition and fees Topic 2 QTRE ¦ Tuition and fees required for enrollment Test: Is the fee required to be paid to the institution as a condition of enrollment/attendance? ¦ Books, supplies, equipment (only if it must be purchased from institution ¦ Student activity fees (if required for enrollment) QTRE What does it exclude? ¦ Sports or hobby-related expenses (unless part of the student’s degree program) ¦ Personal Expenses ž ž ž ž ž Room Board Insurance Medical (including student health fees) Transportation 2003 REPORTING REQUIREMENTS [FORM 1098-T] ¦ ¦ ¦ ¦ ¦ Name, address, and ID # Did the student attend at least half-time? Is student enrolled in graduate program? Contact name and telephone number. BOX 7 only applies to tuition insurance providers. REPORTING REQUIREMENTS AMOUNTS TO REPORT ¦ Must elect between 2 methods: 1. Total payments received for QTRE [BOX 1] or 2. ¦ Total amounts billed of QTRE [BOX 2] Adjustments for a prior year [BOX 3] REPORTING REQUIREMENTS AMOUNTS TO REPORT (cont.) ¦ Scholarships or grants processed by institution [BOX 4] ¦ Adjustments made to scholarships or grants 5] [BOX 2003 REPORTING REQUIREMENTS ¦ 3 different boxes to be checked: 1.If amount in Box 1 or 2 relates to the first three months of the next year [BOX 6] 2.If at least a half-time student [BOX 8] 3.If graduate student [BOX 9] 2003 REPORTING EXCEPTIONS ¦ Nonresident aliens ¦ Non-credit courses ¦ Qualified expenses waived or paid entirely by scholarship ¦ Qualified expenses covered by formal billing arrangement 2003 REPORTING EXCEPTIONS (cont.) ¦ Qualified expenses are covered by formal billing arrangement when: ž Institution is paid directly by employer, gov’t entity or other institutional third party and ž Institution does NOT maintain separate financial account for individual student(s) Topic 3 STATEMENTS REQUIRED ON FORM 1098-T ¦ Tax information that is being furnished to the IRS ¦ Reporting method: ž Amounts paid ž Amounts billed ¦ Scholarships, grants and refunds may reduce credit ¦ Refer to relevant IRS forms and publications ¦ Institution contact information (name and phone number) and, if applicable, service provider contact information. IRS PENALTIES ¦ Penalty for failure to file timely return with the IRS ¦ Penalty for failure to furnish correct information to the student ¦ Waiver for reasonable cause Show acted in a “responsible manner” THEN ž Must solicit TIN at least once during the year ž Must request TIN in writing (W9S satisfies requirement) ž THANK YOU FOR YOUR PARTICIPATION Visit our website for more information www.nacubo .org This Webcast has been sponsored by: Pearson Government Solutions Providing a wide range of 1098-T reporting solutions to American campuses. Data management. Customer service. IRS reporting. hopescholar@ncspearson.com 800-654-8341 www.ncspearson.com
