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Tax Information

Woman working on laptop in school hallway on benchIf you've gotten a 1098-T, or you are expecting to receive one, you may have some questions. We hope that these answers will help.

Who gets a 1098-T?

  • You will receive a 1098-T only if you had out-of-pocket payments, whether paid by you or with a loan, for “qualified educational expenses.”   IRS Publication 970 defines "qualified educational expenses" as tuition, fees, and books
  • You will not receive a 1098-T on the portion of tuition paid with tax-free educational assistance.   Per IRS guidelines:  If you pay qualified education expenses with certain tax-free funds, you cannot claim a credit for those amounts. You must reduce the qualified education expenses by the amount of any tax-free educational assistance and refund(s) you received.  A 1098-T is, therefore, not issued for the portion of tuition paid with tax-free educational assistance including:
    • The tax-free part of scholarships and fellowships,
    • Pell grants,
    • Employer-provided educational assistance,
    • Veterans' educational assistance, and/or
    • Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance (including CAP and FSEOG grants).

How do I get a 1098-T if I qualify to receive one?

Is financial aid taxable?

  • In general, financial aid is not considered taxable income to the extent it is used toward "qualified educational expenses."  Student loans are never considered taxable income because it is borrowed money that must be repaid.  Grants and scholarships may be considered taxable income to the extent they are not used for "qualified educational expenses." 

Are there education tax credits I may qualify for?  How do I learn more about tax guidelines regarding education?

Students may be eligible for a number of tax credits when filing a federal tax return.  We encourage you to read IRS guidelines such as IRS Publication 970, Tax Benefits for Education, regarding any tax benefits for which you may qualify and to consult your tax preparer.   Publication 970 may be downloaded from the IRS web site at www.irs.gov.  

How to get your tax refund onto your BankMobile/Higher One account?

  1. Go to the BankMobile Disbursements website  
  2. Once your account is created login with your email address and password      
  3. If you have not created an account, enter your Personal Code or ID card number sent to you by BankMobile in the green envelope.
  4. Follow Instructions
  5. Contact BankMobile at 1-866-663-2228 for more assistance

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