1098-T question

Good Monday Morning!

We started the day with a sophmore parent questioning the amounts
on the 1098-T. I am enlisting your assistance in anyway possible (ie
even if you are not a Michigan school or a Datatel )

Background:

A. We are a Michigan school, therefore, students may qualify for
MEAP (state) monies for the first two years. This scholarship is earned
by testing that is done throughout elementary and high school years.
The MEAP scholarship is applied toward tuition or can be refunded for
purchasing a computer or books (there are other qualifications, but we
are not directly involved in that). If a student requests MEAP money to
be refunded, we have to refund it.

B. We have the semester format. Our Spring semester (beginning in
early January) is billed in December. This causes it to be included in
the prior year 1098-T information. A calendar year will include tuition
for any or all of the following: summer, fall and the next years spring.
(unless they register for spring after the 1st of the year - very late)

C. Our financial aid is transmitted (officially applied to the student
account vs. showing as pending) at the end of the semester. The
1098-T information will include scholarships for spring, summer, and
fall. Not the following spring for which tuition is included.

This causes the freshman and senior years to look a little strange,
although they are accurate.

Now to the question of the morning. Because the parent did not
understand the MEAP (ability to w/draw and not apply to tuition), she is
asking us to make changes so they can get the Hope Tax credit for the
2nd and last year. She wants us to make it appear that they paid the
$1250 (1/2 for 04/SP and 1/2 for 04/FA) for tuition instead of the MEAP
scholarship paying towards tuition.

She is suggesting we give the daughter a bookstore voucher for
$1250, then she can show documentation that she paid (she did pay
us, it was just applied towards room and board because the
scholarships 'officially' are applied to tuition first).

1. Do you know if we can do that? (give the voucher for a prior
semester in a prior fiscal year?)

2. If we do it, how do I make a change to the IRS reporting. I have
never made ammendments to the amounts after submitted. I am also
told by my programmer, that he does not know a way to change an
individual amount. Wouldn't this cause audit issues?

3. We use Datatel Colleague. If I can change an individual, does
anyone know how in Colleague? How do I report the change to the
IRS?

PLEASE help!

I appreciate any advice from Datatel schools, Michigan schools and all
others.

Sorry for the length. Thanks in advance.

Melissa Rauch
Aquinas College
Student Accounts
voice 616.632.2918; fax 616.732.4482
www.aquinas.edu
Received on Mon Mar 21 10:20:53 2005