What does an amount in Box 1 mean?
Box 1 ("Payments received for qualified tuition and related expenses") of your 1098-T displays the net amount of payments received during the tax year (January - December) that were required as a condition of your enrollment and attendance. To "qualify," payments must relate to an academic period for which fees are due and payable during the tax year, and for which instruction begins no later than March of the following tax year. The amount is calculated by summing the "qualified" portions of registration and course materials fees, less any refunds or reductions of these fees due to enrollment changes. This net amount is sent to the IRS.
By the IRS' definition, "qualified tuition" does not include insurance and student health fees; see "Expenses That Do Not Qualify" in Chapter 2 (Hope Credit), or "Expenses that Do Not Qualify" in Chapter 3 (Lifetime Learning Credit) of Publication 970: Tax Benefits for Education [download] for more information.
On the reverse of the student copy of your 1098-T, you will find the "financial supplement," providing more detailed information. Part 1 "Payments Received for Tuition and Related Expenses," displays your payments broken down into the following expense categories (if applicable):
- Regular Session Fees
- Pre-paid Regular Session Fees
- Course Materials Fees
- Summer Session Fees
- University Extension Fees
- Pre-paid University Extension Fees
Access your record at UCSB's Tax Credit Reporting Service (TCRS) http://www.1098t.com/ to view and print copies of your 1098-T and "financial supplement." Also at this web site, the expense categories in Part 1 are linked to more information. For example, just click on a link for "Regular Session Fees," and you will see the details (dates, descriptions, amounts) for all transactions that were compiled into that category, such as: