Re: bursar-l: 1098Ts and Prepaid College Savings Plans

Karen: Prepaid college savings plans are not scholarships, they are the
student's or family's savings and should not be reported as scholarship
grants on the 1098-T.
 
That said, there is a coordination issue with the education tax credits
that the taxpayer has to resolve in that the same qualified education
expenses cannot be used for both the credits and the tax-free
distribution. The mechanics of this computation are explained in IRS
Publication 970 (http://www.irs.gov/pub/irs-pdf/p970.pdf). Anne
 
Anne C. Gross
Vice President, Regulatory Affairs
NACUBO
202-861-2544 anne.gross@nacubo.org
202-449-1229 (fax)

________________________________

From: bursar-l-bounces@list.mail.virginia.edu
[mailto:bursar-l-bounces@list.mail.virginia.edu] On Behalf Of Karen Key
Sent: Thursday, January 04, 2007 4:52 PM
To: bursar-l@list.mail.Virginia.EDU
Subject: bursar-l: 1098Ts and Prepaid College Savings Plans

We are having conflicting opinions and can't find an answer anywhere
regarding prepaid college savings plans. Does your institution report
money received from these plans as scholarships and grants on the 1098T?
 
Thanks,
 
Karen Key
Bursar
Mississippi College
Box 4051
Clinton, MS 39058
Phone: 601.925.3309
 
 

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Received on Fri Jan 5 11:09:23 2007