Tax Information - Form 1098-T

 

• Internal Revenue Service Treasury Regulation

  To comply with federal laws, we are required to ask for your Social Security Number (SSN) or individual taxpayer identification number (ITIN). We will use your SSN/ITIN to generate your 1098-T. If your Social Security Number is incomplete or missing from your student account, your 1098-T will still generate; however it will not match with the IRS. North Idaho College must have your SSN to file certain returns with the IRS and furnish you with an accurate 1098-T form. If you are not eligible to have a social security number, your taxpayer identification number is sufficient. The return the college must file contains information regarding qualified tuition and related expense payments during the current tax year that you may be eligible to claim and reduce federal income tax.

  If your Social Security number is incomplete or missing, please complete the Request for Student's Taxpayer Identification Number and return it to the Student Accounts Office. Do not send this form to the IRS.

  If you do not wish to provide NIC with your SSN/ITIN or are an international student, please complete the Opt-Out portion of the Request for Student's Taxpayer Identification Number and return it to the Student Accounts Office.

  If you do not submit your SSN/ITIN, you will not be denied access to the college; however, you may be subject to civil penalties (refer to Internal Revenue Service Treasury Regulation 1.6050S-1(e)(4) for more information). Pursuant to state law and federal law (Family Educational Rights and Privacy Act), the college will protect your SSN from unauthorized use and/or disclosure.

• Social Security Number Usage

  In compliance with Section 7 of the Federal Privacy Act of 1974, 4 U.S.C. § 552a note, and various amendments to the Social Security Act codified at 42 U.S.C. § 405, this document serves to notify you of the purpose for the collection and usage of your SSN.

  North Idaho College (NIC) will only use your social security number (SSN) as needed for lawful purposes within the business of NIC and for those specific purposes identified by the Social Security Administration, the Internal Revenue Service and other state and federal regulatory agencies. The SSN will not be used in any information system as the primary identification of staff; and recognizes that the issue of identity theft is a growing problem. NIC departments that are authorized and required to collect, transmit, store or use an SSN will do so in a secure manner. Violations of this policy may result in disciplinary action up to and including discharge or dismissal in accordance with NIC rules and procedures.

  NIC collects and uses your SSN only for the following purposes in performance with the College's duties and responsibilities. To protect your identity, NIC will protect your SSN from unauthorized access, never release your SSN to unauthorized parties, and assign you a unique student identification number. This unique ID number is used for all associated employment and educational purposes at NIC.

  For the student information system (MyNIC), the primary identifier for the student will be their login that they received upon application to NIC. The unique ID number assigned to all students will be used to access student education records, and for electronic and paper data systems that identify, track and service students. Faculty and staff will require students to provide their student identification number for all transactions and not SSNs for any transactions requiring access to student records.

• 1098T Tax Form Information

  The tax documentation that students will receive during the 2018 tax year looks slightly different than it has in prior years. Congress and the IRS eliminated the option to report the "amounts billed" on from 1098T. Colleges must now report the "amounts paid" for qualified tuition and expenses (not books). This change went into effect for the 2018 tax year.

  So why did Congress and the IRS make this change? Based on a compiled report, it was determined there were a large number of errors as it related to educational tax credits. The majority of these errors were caused by confusion regarding "amounts billed" and the actual "amounts paid". This change will eliminate any confusion and inaccuracies on the 1098T forms going forward.

  From 2018 on, the 1098T form will have an amount listed in Box 1 instead of Box 2.