Re: 1098-T Financial Reporting

From: Eileen Walker (emwalker@owu.edu)
Date: Thu Nov 07 2002 - 13:19:47 EST

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    Ann,

    We have decided that we will report amounts billed and not amounts paid,
    because it would be inappropriate for us to make the decision of how a
    partial payment should be allocated between qualified tuition and related
    expenses or room and board or ancillary charges. Obviously the treatment of
    the payment can have an effect on the taxability of scholarships and grants
    that are not specifically designated to tuition. We don't feel we are in a
    position to ask the payor how they want to allocate their payment or to
    make that election for them.

    However, this has brought up an interesting scenario, as we bill for Spring
    Semester in November and the payment is due at the beginning of January.
    Therefore, a tax payor will have an amount on their 1098-T that relates to
    the next calendar (tax) year. I have not yet figured out how the IRS will
    reconcile all of this!

    Eileen Walker

    1:40 AM 11/7/2002 -0500, Ann Lacertosa wrote:
    >Good morning,
    >
    >We are discussing the pros/cons of reporting the aggregate amounts of
    >qualified tuition and expenses paid or amounts billed to the student.
    >We are PowerCampus users.
    >
    >We have contracted with TCRS to produce our 1098-T's and "plan" to
    >report financial information this year. (In the past, demographics were
    >reported through TCRS and we supplied our students with a statement of
    >their account.)
    >
    >Imput, as to which way you report and why is appreciated.
    >
    >Thank you
    >
    >Ann Lacertosa
    >Director of Student Accounts

    Eileen M. Walker
    Associate Vice President & Controller
    Ohio Wesleyan University
    Delaware, Oh 43015

    Phone: (740) 368-3363
    Fax: (740) 368-3009



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