Tax Information

For Tax Year 2023

Student Aid Income which is NOT taxable
Financial aid used to pay Tuition Assurance (tuition) expenses at C of O which are NOT considered taxable income on federal or state tax returns include the following:
Federal Pell Grant
Federal SEOG
Federal Work Study (during the fall and/or spring semesters)
Federal Work College (during the fall and/or spring semesters)
Access Missouri Grant
C of O Tuition Assurance Scholarship
Scholarships used to pay tuition

Student Aid Income which is to be reported and is taxable
Summer 2023 Work Education Program Scholarship and Other Room and Board Scholarships
Financial Aid awards are considered taxable if the funds were used for room and board expenses. Therefore, these awards must be reported as taxable scholarships on federal and/or state tax returns. Please see Publication 501 for income filing requirements. You may wish to consult a qualified tax advisor about potential tax credits and tax preparation.
Summer Work Education Program (SWEP) Scholarship

Students participating in the summer 2023 SWEP will report scholarship amounts as follows:
1. 12 week SWEP, scholarship amount was $11,856, ($8,500 + $3,356 room & board during SWEP)
2. Either 6 week SWEP, scholarship amount was $5,928 ($4,250+ $1,678 room & board during SWEP)
Room and Board Scholarships, including academic and athletic awards (whether funded by the College or other entity)

Please see IRS Topic No. 421 Scholarships, Fellowship Grants, and Other Grants for reporting scholarships on tax documents.
Where should you include your SWEP income on the FAFSA?
Adjusted gross income
Income earned from work
Grants and scholarships received
For FAQs, 1098t contact information and additional resources, please see more at the bottom of this page.

For Tax Year 2022

Student Aid Income which is to be reported and is taxable
Summer 2022 Work Education Program Scholarship and Other Room and Board Scholarships
Financial Aid awards are considered taxable if the funds were used for room and board expenses. Therefore, these awards must be reported as taxable scholarships on federal and/or state tax returns. Please see Publication 501 for income filing requirements. You may wish to consult a qualified tax advisor about potential tax credits and tax preparation.
Summer Work Education Program (SWEP) Scholarship

Students participating in the summer 2022 SWEP will report scholarship amounts as follows:
1. 12 week SWEP, scholarship amount was $11,275 ($8,200 + $3,075 room & board during SWEP)
2. Either 6 week SWEP, scholarship amount was $5,638 ($4,100+ $1,538 room & board during SWEP)\
Room and Board Scholarships, including academic and athletic awards (whether funded by the College or other entity)

Please see IRS Topic No. 421 Scholarships, Fellowship Grants, and Other Grants for reporting scholarships on tax documents.

Where should you include your SWEP income on the FAFSA?
Adjusted gross income
Income earned from work
Grants and scholarships received

For FAQs, 1098t contact information and additional resources, please see more at the bottom of this page.

For Tax Year 2021

Student Aid Income
Financial aid used to pay Tuition Assurance expenses at C of O are not considered taxable income on federal or state tax returns include the following:
Federal Pell Grant
Federal SEOG
Federal Work Study
Federal Work College
Access Missouri Grant
C of O Tuition Assurance Scholarship

Summer 2021 Work Education Program Income and Other Room and Board Scholarships
Financial Aid awards are considered taxable if the funds were used for room and board expenses. Therefore, these awards must be reported as taxable scholarships on federal and/or state tax returns. Please see pages 2 and 4 of Publication 501 for income filing requirements. You may wish to consult a qualified tax advisor about potential tax credits and tax preparation.
Summer Work Education Program (SWEP) Scholarship

Students participating in the summer 2021 SWEP will report income amounts as follows:
1. 12 week SWEP, income was $10,862 ($7,900 + $2,962 room & board during SWEP)
2. Either 6 week SWEP, income was $5,431 ($3,950 + $1,481 room & board during SWEP)
Room and Board Scholarships, including academic and athletic awards (whether funded by the College or other entity)

Where should you include your SWEP income on the fafsa?
Adjusted gross income
Income earned from work
Grants and scholarships received

Notice Regarding COVID Emergency Relief Funds
Students enrolled in six (6) or more credit hours for spring 2021 or fall 2021 received a check from funds provided by the CARES Act, CRRSAA, HEERF II, HEERF III or ARPA. These fund are not counted as income.
See IRS notice issued on March 30, 2021 for more information.

For FAQs, 1098t contact information and additional resources, please see more at the bottom of this page.

For Tax Year 2020

Summer 2020 Work Education Program Income and Other Room and Board Scholarships
Financial aid is considered taxable income if the funds were used for room and board expenses. Therefore, these awards must be reported on federal and/or state tax returns.
     Summer Work Education Program (SWEP) Scholarship

Students participating in the summer 2020 SWEP will report income amounts as follows:
1. 12 week SWEP (actual 5 work weeks for summer 2020), income was $9,134 ($7,900 + $1,234 room & board during SWEP)
2. Either 6 week SWEP (actual 2.5 work weeks for summer 2020), income was $4,567 ($3,950 + $617 room & board during SWEP)
Room and Board Scholarships, including academic and athletic awards (whether funded by the College or other entity)

Where should you include your SWEP income on the fafsa?
     Adjusted gross income
     Income earned from work
     Grants and scholarships received

CARES Act and Emergency Relief Funds Grants

Students enrolled at C of O, full time, through the end of the spring 2020 semester received a check from funds provided by the CARES Act. According IRS information, these funds are not counted as income for tax year 2020.

Also, see IRS notice issued on March 30, 2021 which contains additional information regarding emergency grants and treatment on tax returns.

For FAQs, 1098t contact information and additional resources, please see more at the bottom of this page.

For Tax Year 2019

Summer 2019 Work Education Program Income and Other Room and Board Scholarships
Financial aid is considered taxable income if the funds were used for room and board expenses. Therefore, these awards must be reported on federal and/or state tax returns.
Summer Work Education Program (SWEP) Scholarship
a) Students participating in the summer 2019 SWEP will report income amounts as follows:
               for 12 week SWEP, the income was $10,450 ($7,600 + $2,850 room & board during SWEP)
               for either 6 week SWEP, the income was $5,225 ($3,800 + $1,425 room & board during SWEP)

b) Room and Board Scholarships, including academic and athletic awards (whether funded by the College or other entity)

Please see IRS Topic No. 421 Scholarships, Fellowship Grants, and Other Grants for reporting scholarships on tax documents.

Where should you include your SWEP income on the fafsa?
     Adjusted gross income
     Income earned from work
     Grants and scholarships received

For Tax Year 2018

Summer Work Program Income
Financial aid is considered taxable income if the funds were used for room and board expenses. Therefore, these awards must be reported on federal and/or state tax returns.
     Summer Work Education Program (SWEP) Scholarship
Students participating in the summer 2018 SWEP will report income amounts as follows:
               for 12 week SWEP, the income was $10,175 ($7,400 + $2,775 room & board during SWEP)
               for either 6 week SWEP, the income was $5,087 ($3,700 + $1,387 room & board during SWEP)

Room and Board Scholarships, including academic and athletic awards (whether funded by the College or other entity)

Where should you include your SWEP income on the fafsa?
     Adjusted gross income
     Income earned from work
     Grants and scholarships received

For Tax Year 2017

The following is general information regarding student financial aid and income taxes, which should be considered by students when completing federal and state tax returns.

Any portion of grants and scholarships (such as Pell, Access Missouri, SEOG, Work Study, C of O Grant, etc.) which pays for cost of education, fees or books is not taxable, and not considered taxable income on the student’s federal or state tax return.
Any portion of grants and scholarships (outside scholarships, summer work education program, academic, athletic, etc.) which pays for room and board is taxable and must be reported as taxable income on the student’s federal and state tax return, if the student is required to file a return. Students who worked on campus during summer 2017, to pay for 2017-18 room and board, must consider the value of summer work as taxable income, because such work is considered an educational scholarship. The value for the 12 weeks worked in summer 2017 is $9,762 ($7,100 for 2017-18 room and board plus $2,662 for room and board during the 12 weeks in summer 2017). The value for either 6 week session worked in summer 2017 is $4,881 ($3,550 for fall 2017 plus $1,331 for room and board during the 6 weeks in summer). The appropriate amount should be noted as "taxable scholarship” on the student’s tax return for 2017.

Resources

For more information regarding education credits, please see:
American Opportunity or Lifetime Learning
IRS form 8863
www.irs.gov

Filing Limits
For tax filing information such as filing limits, please see IRS Publication 501.

Tax Preparation Assistance
College of the Ozarks does not offer individual tax-related counsel or tax preparation assistance. If you require assistance with tax preparation, please visit the Tax Preparation Resources page for form information and locations.

Form 1098T and College Expenses

The FAQs below are for general information. Account specific inquiries regarding Form 1098T may be directed to the Cash Accounts Office via phone at 417.690.2501 or email cashaccts@cofo.edu.

What is Form 1098T? It is an informational statement that colleges are required to provide to certain students and the IRS to report: the total amount of qualified expenses paid by both the student and by C of O; all scholarships and grants received (for both qualified and non-qualified expenses); and whether the student was enrolled at least-half time.

What is a qualified/non-qualified expense? Qualified expenses are those eligible for a tax credit; non-qualified expenses are not eligible for a credit. C of O’s Cost of Education, part-time cost of education, and certain class-related fees are qualified expenses. Room and board and the HTS fee are non-qualified expenses. Qualified expenses paid by the student in 2023 are included in the amount in Box 1.

Who should receive a 1098T? Colleges are not required to provide a 1098T to students whose qualified expenses are paid entirely with scholarships. Because C of O provides 100% of the Cost of Education for full-time students, most C of O students will not receive a 1098Tstrong>. Students who paid for work hours, part-time class charges, or required class fees should receive a 1098T.

Since I received Form 1098T, will I qualify for a tax credit? Not necessarily. Two education tax credits are in place for 2023: The American Opportunity Credit and the Lifetime Learning Credit (both use IRS Form 8863). Under IRS guidelines, students or parents may claim an education tax credit based only on qualified expenses actually paid by the student or parent during the year. (Included in Box 1)

Does the amount in Box 1 of my 1098T equal the qualified expenses I can claim as a tax credit? No. The College is required to report in Box 1 amounts received for qualified expenses in 2023 from all sources, including federal/state grants, the C of O Cost of Education scholarship, and any student payments for work hours, part-time class charges, or required class fees. Students must review their payment records to determine if any amounts were paid “out of pocket” for qualified expenses. Examples of payments for qualified expenses include cash payments for these charges: work hours, part-time cost of education, and required class fees. You can check your payment history on Campusweb – Student tab – My Account Balances page. This page will also show if you owe or have any credit. You can click on the $$$ link to open the description.

Can I claim a tax credit for the amount I paid for room and board? No. Room and board charges are defined as non-qualified expenses. Payments for non-qualified expenses are not eligible for a tax credit.

My accountant says that the College must provide me with a form 1098-T? The College is not required by the IRS to furnish a Form 1098-T in the following instances:

Payments for courses for which no academic credit is offered, even if the student is otherwise enrolled in a degree program.
Enrolled student is a nonresident alien.
Students whose qualified tuition and related expenses are entirely waved or paid entirely with grants/scholarships.
Students for whom you do not maintain a separate financial account and whose qualified tuition related expenses are covered by a formal billing arrangement between an institution and the student’s employer or governmental entity, such as the Department of Veterans affairs or Department of Defense.

Are room and board scholarships taxable? Yes. Any scholarship used to pay for non-qualified expenses is considered taxable income to the student and should be reported on the student’s tax return (this includes the Summer Work Program and any other room and board scholarship). The IRS does not require colleges to issue any type of form to students showing these taxable scholarship amounts. More information regarding the taxability of the Summer Work Program and any other room and board scholarship can be found at www.cofo.edu<, under Admissions/Costs & Financial Aid/Tax Information.

Are CARES Act grants received in 2023 taxable? No, per IRS guidelines.

Who should I contact with questions? For questions about the amounts reported on the 1098T, contact Cash Accounts at (417)-690-2501 to set up an appointment. College of the Ozarks cannot provide tax advice to students or parents. For questions about tax credit eligibility or filing for the tax credit, consult Publication 970, the instructions for Form 8863, your tax advisor, or the IRS.