Office of the Controller

Tax

1099-MISC Guidelines

A 1099-MISC form is required by the IRS to be issued to independent contractors, other individuals, or unincorporated businesses that have received payments of $600 or more in a calendar year. The Financial Accounting area within the Controller's Office produces the 1099-MISC form, sending one copy to the vender and one copy to the IRS.

Some types of non-employee compensation that must be reported by an employer on Form 1099-Misc include:

  • Payments to non-employees for services rendered including payments for fees, honoraria, commissions and personal service contracts.
  • Payments to recipients other than real estate agents for rental of property and equipment.
  • Royalty payments of $10 or more per year.
  • Prize and award payments that are not for services rendered.
  • Medical and health service payments including payments to corporations.
  • Legal services.

With the exception of payments for medical and legal services, only payments to individuals and partnerships are 1099 reportable. Scholarship and fellowship payments are not within the scope of 1099 reporting.

For single payments to current ISU employees for services rendered outside of their current position, please use the One Time Pay Authorization Form. Please note that as of January 1, 2014, student employees cannot be paid via a One Time Pay Authorization form. All student employment should be routed through the Career Center.

For questions related to the classification of an individual as an independent contractor versus an employee, please contact Robert Anthrop.

The University is responsible for obtaining correct supplier information for 1099 vendors, which includes the supplier name, address, social security number/employer identification number, and type of organization. This information is collected with the W-9 Request for Taxpayer Identification Number and Certification form. This form must be collected from the vendor for all first-time vendor payments and sent with the check request.

Request for 1099 reportable payments will be processed using a University check request with the following information:

* Full legal name of payee
* Permanent home address
* Social security number or tax identification number
* Payment description

If a 1099 reportable vendor is being paid for services and travel and/or reimbursed expenses, these must be processed on separate check requests to ensure the reimbursed expenses aren't included on the 1099-MISC form.

1098-T Forms

Indiana State University is required to issue Form 1098-T, Tuition Statement, which reports either qualified education expenses billed during the calendar year or qualified education expenses paid during the calendar year. ISU reports expenses billed. The form also reports scholarships or grants applied during the calendar year. The form is informational only and may be used to assist taxpayers in determining the education credit on the federal tax return.

Frequently Asked Questions

General Information

How can I get a copy of my 1098-T?

Every ISU student eligible to receive a 1098-T will have electronic access to their form by January 31st. Mailed forms will be post-marked by January 31st and will be sent to the mailing address in the University's records as of the post-mark date. To access your 1098-T through your MyISU Portal, follow the steps below.

  • Once logged into the MyISU portal, select the "MyISU Apps" link on the bottom right.
  • Select the "Student Self Service" badge.
  • Select the "Financial Resources" tab.
  • Select "1098-T".
  • Enter the Tax Year, and click "Submit".
  • Once you’ve accessed your 1098-T, you can print it from your Portal. You can also view the details behind the numbers on your form at the bottom of the screen. Note that you are not required to submit a copy of the 1098-T with your tax return.

Why is Box 1 of my 1098-T blank?

Box 1 is blank because the IRS provides the option for universities to report either "Payments Received" in Box 1 OR "Amounts Billed" in Box 2. ISU has elected to report "Amounts Billed" only. Please refer to your Account Summary on the MyISU Portal to determine the amount of qualified tuition and related expenses that you actually paid during the calendar year when computing your credit.

What does the amount in Box 2 mean?

Box 2 (Amounts billed for qualified tuition and related expenses) reflects the "qualified tuition and expenses" billed to your account during the tax year. "Qualified tuition and expenses", as defined by the IRS, includes tuition and related fees that are required for enrollment or attendance by the University. Examples of those fees include the recreation fee, distance education delivery fee and lab fees. Box 2 WILL NOT include expenses billed for room and board.

What does the amount in Box 4 mean?

Box 4 (Adjustments made for a prior year) reflects any refunds of tuition and fees billed in a previous tax year that you may have received in the current tax year. The amount in Box 4 may reduce any allowable education credit you claimed for a prior year (may result in an increase in tax liability for the year of the refund).

What does the amount in Box 5 mean?

Box 5 (Scholarships or grants) reflects any scholarships or grants for the payment of the individual's cost of attendance that the institution "administered and processed" during the calendar year. The 1098-T was not designed as a way to capture information on taxable scholarships.

What does the amount in Box 6 mean?

Box 6 (Adjustments to scholarships or grants for a prior year) reflects any adjustments of scholarships or grants that were originally applied in a previous tax year. Adjustments of scholarships or grants shown in Box 6 could affect an education credit filed in a previous tax year. It is recommended to contact your tax preparer for advice.

What does the check mark in Box 7 mean?

If there is a check mark in Box 7, it means that Box 2 will include billed tuition and fees for an academic semester that began in the new tax year. For instance, the ISU Spring semester begins in January, but the tuition and fees for that semester are normally billed in December. The billing and the time of instruction take place in two different tax years. This does not occur with the Fall or Summer semesters, which are billed and take place in the same tax year.

What does the check mark in Box 8 mean?

If there is a check mark in Box 8, it means that you were considered at least a half-time student during the tax year. At ISU, "at least half-time" is considered to be 6 or more credit hours in a semester

What does the check mark in Box 9 mean?

If there is a check mark in Box 9, it means that you are considered to be enrolled in a program leading to a graduate degree, graduate-level certificate, or other recognized graduate-level educational credential.

What if I believe there is an error on my 1098-T?

If you believe there is an error on your 1098-T, you can email 1098t@indstate.edu or call (812-237-3523 or 812-237-8701) the Office of the Controller. If you are a parent or other individual calling on behalf of a student, you must have FERPA Authorization granted by the student.

What education credits are available and where can I get information regarding the credits?

The University cannot provide tax advice. Contact the IRS or consult with a reputable tax preparation service. The IRS has also developed the Interactive Tax Assistant, an online progression of questions to help taxpayers determine their eligibility for the American Opportunity Tax Credit (AOTC) or the Lifetime Learning Credit. IRS Form 8863 is used to calculate educational tax credits. Please refer to IRS Publication 970, "Tax Benefits for Education" for additional information about educational credits.

The IRS Form 1098-T is informational and should not be attached to your tax return when filed.

NACUBO's Education Tax Credit site provides information on both tax credits, as well as information about some of the other provisions of the Taxpayer Relief Act. It also has links to various IRS publications. See "Resources for Students" on this page. NACUBO is the National Association of College and University Business Officers.

Online Access

How do I choose to access the 1098-T in an electronic format only?

It's easy! Just log into your MyISU Portal, and follow the directions below:

  • Once logged into the MyISU portal, select the "MyISU Apps" link on the bottom right.
  • Select the "Student Self Service" badge.
  • Select the "Financial Resources" tab.
  • Select "1098-T Opt Out of Printed Copy".
  • After reading the Electronic 1098-T Disclosure Statement, select that you have read and accept the acknowledgement and click "Submit".

The Electronic Disclosure Statement will open on a separate window. Once you have read and accepted the acknowledgement, you can go back to the "Financial Resources" page and follow the steps below to access the form:

  • Select "1098-T".
  • Enter the Tax Year, and click "Submit".
  • Once you’ve accessed your 1098-T, you can print it from your Portal. You can also view the details behind the numbers on your form at the bottom of the screen. Note that you are not required to submit a copy of the 1098-T with your tax return.

Please note that electronic access refers to obtaining a copy of the form through the MyISU Portal. It does not mean that the form will be emailed to you.

If I elected to access an electronic copy of my 1098-T in a previous year, do I need to do it again this year?

No, once you have elected to receive the 1098-T electronically, your election stays in effect for the remainder of your time at ISU, unless you chose to cancel it.

When will my 1098-T form be available?

The forms will be available online by January 31st. You will receive email notification when your form is available.

Can my parents or tax preparer access my 1098-T online?

No, online access for 1098-T forms is available to ISU students only.

FREE Tax Help for International Students

ISU sponsors Volunteer Income Tax Assistance (VITA) workshops for ISU international students and scholars. Workshop volunteers are certified by the Internal Revenue Service to assist international students in preparing non-resident tax returns. VITA workshops are open to current international students and those who were present at the University during the tax year.

For questions regarding the VITA workshops or tax compliance for international students or scholars, please contact the Office of the Controller at x3525.

Link Area

Contact

Bob Anthrop
1099-MISC Questions
(812) 237-3521

1098-T Hotline
(812) 237-7818

Hope Waldbieser
Tax Workshops & Tax Compliance
(812) 237-3524

Office of the Controller
Indiana State University
200 North Seventh Street
Terre Haute, IN 47809-1902
812.237.3535
Fax: 812.237.8179