What is a 1098-T?
In 1997, the Taxpayer Relief Act established two education tax credits and a deduction for student loan interest. These credits are explained in detail in Publication 970 from the IRS.
The 1098-T form is a Tuition Payment Statement that includes information that colleges and universities are required to issue for the purpose of determining a student's eligibility for education tax credits. The 1098-T form issued by the University of Massachusetts-Amherst reports the amount billed to you by the University of Massachusetts-Amherst over the course of the previous calendar year, from 1/1/12 to 12/31/12. This form is intended to assist you or your parents in preparation of your federal income tax return.
Note: Just because you receive a 1098-T does not automatically mean you qualify for a credit. If you have questions about how to compute your education tax credit, you should consult your tax professional or refer to the IRS. Your accountant, tax preparer, or the Internal Revenue Service can best advise you in the utilization of this form when preparing your taxes.