Tax Tips for Higher Education
There are many different issues/nuances with the 2019 Form 1098-T. Penalties can be as much as $260 per form if not filed in a timely manner. Form 1098-T, Tuition Payments Statement – Academic institutions issue Form 1098-T to students who paid tuition during the tax year. This form helps the students calculate the educational credits. Since nonresident aliens usually cannot claim the educational credits, the form is not part of their tax return.
There are very few changes to the 2019 Form 990, “Return of Organization Exempt From Income Tax.” However, the IRS beat their several years to change estimate and updated Part X for Lines 27 and 28. See changes for “Net assets with/without donor restrictions” and more.
Internal Revenue Code Section 127 provides for “employer education assistance programs.” A new bill in the House of Representatives would increase the long-standing $5,250 per employee annual limit. But wait… I have a question.
We are still celebrating the retroactive repeal of the “Parking Tax.” Last week the IRS published instructions for filing amended Form 990-Ts for the years where refunds are now due. Congress had asked the IRS to “establish an expedited process.” This fell far short of that.
Schools that are “eligible educational institutions” must file Form 1098-T by fast approaching due dates. In addition, with the “deletion” of Box 2 (Amounts billed) beginning with the 2018 form, there remains much confusion with regard to this form. Watch out for penalties for late filing!