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 Barbara Tschida.

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 (812-237-7818) the Office of the Controller. If you are a parent or other individual calling on behalf of a student, you must have Proxy Access granted by the student.

What if I am an international student?

Indiana State University is not required to supply Nonresident Aliens (NRA) with the form 1098-T according to the guidelines established by the Internal Revenue Service. This is because nonresident alien students are not eligible for education tax benefits. However, because ISU cannot definitively determine which foreign students are residents for tax purposes, we will generate one at the request of a student and forward the information to the IRS. We may ask for a completed Form W-9S, Request for Student’s or Borrower’s Taxpayer Identification Number and Certification, or similar statement to obtain the student’s name, address, and taxpayer identification number.

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.

International Student Income Tax Information

International students are subject to taxation for money made while in the United States and are required to comply with federal, state and local laws with respect to filing taxes. Indiana State University (ISU) staff does not have the proper training or legal authority to offer individual assistance when it comes to filing your tax returns. As a service to all international students and scholars associated with ISU, we have partnered with Sprintax, a web-based international tax preparation program that is an easy-to-use, step-by-step tool that helps your prepare your taxes from start to finish.

About Sprintax – Online Tax Filing Software

Sprintax is an online tax software that will assist you with filing your federal and state income tax returns. They specialize in preparing tax returns for international students and can be accessed from any computer that is connected to the internet and a printer. Sprintax will help you prepare your tax return and provide you with step-by-step instructions of when to file, how to file, and where to file your taxes. Sprintax has many benefits to international students and scholars, including the ability to use a 24-hour live instant messaging tool with tax experts to answer your questions. Although Sprintax is an online system, you will NOT be able to submit your tax forms online. You will have to print, sign and mail the tax return generated by Sprintax once you have completed it. Sprintax will provide you with instructions about the address to which you must mail your tax return. If you have any questions about using the Sprintax software, please contact hello@sprintax.com or use the Live Messenger tool in your Sprintax account. You can also call 1-866-601-5695 for assistance.

Can I use Sprintax to file my Return for Tax Year 2016?

For the federal tax return, the type of form you file will depend on your residency status for tax purposes. You must be a nonresident for tax purposes in order to use the Sprintax software. Your residency status may be different for your immigration status. Sprintax will determine what your tax residency is so that you will be able to complete the correct forms. Please see Tax Software for Residents for Tax Purposes section below if Sprintax determines that you are a resident (for tax purposes only).

ISU will provide you with an access code that will allow you to complete your federal tax return for free. The software has the optional capability to assist individuals to prepare the Indiana state tax return for an additional fee payable by the individual. If you are currently enrolled or were enrolled at ISU at anytime during 2016 and have not received an email containing an access code, please email hopew@indstate.edu to request a code. Codes will only be issued to your @sycamores email address.

If you choose not to use Sprintax, you may use a tax professional or prepare your own tax return.

What Documents and Information Do I Need BEFORE I Login?

Please make sure you have the following documents and information available BEFORE you log into Sprintax, and plan about 30-45 minutes to use Sprintax:

  • Visa/Immigration Status information
  • Passport
  • Form DS-2019, if J status individual
  • Form I-20, if F status individual
  • Social Security or Individual Taxpayer Identification Number (if you have been assigned one)
  • Address Information (i.e., Current U.S. and Foreign Address)
  • U.S. Entry and Exit Dates for current and past visits to the U.S.
  • Academic Institution or Host Sponsor Information (name/address/phone for Academic Director)
  • Forms W-2, 1042-S and/or 1099 (if you received any)
  • Scholarship/fellowship grant letter you may have received (if any)
  • A copy of your last year's federal income tax return (Form 1040NR or 1040NR-EZ), if you filed a federal income tax return last year

How Do I Access Sprintax?

You may access Sprintax from any computer with internet access from anywhere in the world! Simply click on the Sprintax link on the International Student’s Income Tax Information webpage. You can also access it through the links included in the ‘Tax Obligations of International Students & Scholars’ email you received. The email included the ISU access code that you will need to enter when you check out that will allow you to complete your federal return for free.

How Can I Get Help?

If you need assistance with Sprintax, contact Sprintax directly: https://www.sprintax.com/contact-us.html. You can email, call or live chat.

Tax Software for Residents for Tax Purposes

If you are a resident for tax purposes, the IRS website provides free filing services online at “Free File”. You also have the option to use web-based services, like TurboTax, H & R Block At Home Tax Software , or TaxSlayer, among others. ISU does not endorse any one program and you should research your options to find out which one will best suit your needs.

Useful IRS Forms & Publications

Tax information for Foreign Students and Scholars

DISCLAIMER

All tax information provided by Indiana State University (ISU) is intended for international students and scholars of ISU ONLY. ISU staff cannot provide tax advice or personal assistance with US tax forms. You should contact the Internal Revenue Service (IRS) or a tax professional if you require clarification or have any questions about filing your taxes.

Link Area

Contact

Barbara Tschida
1099-MISC Questions
(812) 237-3521

1098-T Call Line
(812) 237-7818
1098T@indstate.edu

Hope Waldbieser
Tax Compliance & 1099-MISC Questions
(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