Blank Form 1098-T

March 21, 2014
by Frederick
0 comments

Form 1098-T: an example of international students’ special needs

I am not a tax attorney or tax consultant. I’m merely an undergraduate student at the University of Pennsylvania, and the Co-Chair of the International Student Advisory Board.

IRS Form 1098-T, which educational institutions issue to students as a tuition statement for tax purposes, is used by many American families to claim educational credits or deductions on their federal tax returns.

Should international students have this form?

It’s complicated. In many situations, yes.

Universities often will choose not to issue this tuition statement to international students because those students can’t do anything with it. ← If I had to write this with footnotes, there would be a million asterisks next to that sentence; keep reading. We’ll return to this question below.

Are international students able to use this form for anything?

Most international students are ineligible to claim those educational credits/deductions because they are nonresident aliens (e.g. F-1 student). Hence, these individuals would not benefit from having the 1098-T.

Some, especially graduate students, may be eligible to claim credits/deductions because…

  1. they are resident aliens per the substantial presence test, particularly after the 5th year of being in the United States;
  2. they are nonresident aliens for immigration, but resident aliens for tax purposes as the spouse of an American citizen or resident alien; or
  3. they are nonresident aliens for both immigration and tax purposes, but eligible dependents of parents who are resident aliens/permanent residents/citizens; those parents are able to claim these credits in certain situations.

IRS Publication 970 explains who is eligible to claim the American Opportunity Credit. Of note: tax-free scholarships and grants affect whether, and how much, you can claim.

Figure 2-2 from IRS Publication 970, illustrating who is eligible to claim the American Opportunity Credit.

Figure 2-2 from IRS Publication 970, illustrating who is an eligible student for the American Opportunity Credit. Note: not all eligible students can claim. See Publication 970 for a flowchart of who is eligible to claim.

I am an international student in the above categories. Can I get a 1098-T from my school?

The IRS says that universities “do not have to file Form 1098-T or furnish a statement for… nonresident alien students, unless requested by the student“. Additionally, they are not required to provide it for “students whose qualified tuition and related expenses are entirely waived or paid entirely with scholarships”.

You must still meet all of the other requirements to get a 1098-T:

  1. Attend an eligible educational institution (college, university, vocational school, or other postsecondary educational institution in §481 of the Higher Education Act)
  2. Have paid qualified tuition and related expenses in that tax year
    • i.e. tuition, fees, course materials required to be enrolled
    • does not include room, board, insurance, medical expenses including student health fees, transportation, and personal/living/family expenses
  3. Receive credit for the completion of course work leading to a postsecondary degree, certificate, or other recognized postsecondary educational credential
    • i.e. most undergraduate bachelors programs and graduate masters and PhDs are fine
    • continuing education is often not included
  4. Be enrolled in any academic period of that tax year (consult IRS instructions for exceptions)
  5. Have provided your SSN or ITIN to the educational institution either through student records or an additional Form W-9S

What are some potential hurdles?

I was in a situation this year where my university did not issue me a 1098-T, and responded to my request with a form letter:

Does every Penn student receive a 1098-T?
Penn does not provide a 1098-T to non-resident aliens, or any student whose qualified charges are fully funded by grant, scholarship or tuition waivers, or any student who was enrolled in non-credit courses during the academic year.

They additionally stated,

“Though you might have received a 1098t form in the past, going forward as a Canadian citizen you will not receive one.”

As I’ve explained above in this post, this determination was a mistake. It conflates citizenship & immigration status with residency for tax purposes, and ignores the possibility that someone else other than me may be eligible to claim the credit.

Furthermore, even if I were a nonresident alien ineligible to claim the credit, nothing in the IRS regulations for Form 1098-T gives the educational institution the right, responsibility, or power to determine whether I might be eligible to claim the credit; nor does it permit them to deny a Form 1098-T to a nonresident alien’s request.

I’m not a lawyer.

Neither are the people at Penn who decided initially that I wouldn’t get a statement. But apparently I’m capable of reading the IRS documents and figuring out for myself what I’m entitled to.

What does this situation reveal about international students?

First, on the superficial level, this situation reveals that immigration status and residency for immigration purposes differs from tax status and residency for tax purposes. Clearly, not all employees who handle these cases are aware of these stipulations.

More importantly…

Even if we define international students to be non-citizens and non-permanent residents of the United States, this constituency is large, diverse, and varied, with complex needs based on their individual families’ statuses. It is a mistake to define broad, indiscriminate policies that treat all international students identically.

If you think I’ve made a mistake in this post, or wish to disagree with my conclusion here, I’d like to hear from you. Comment below or send me an email using the contact form.

February 19, 2014
by Frederick
0 comments

In the way I see the world…

If an individual or a company C takes a morally wrong action to “save face” in reaction to public criticism originating from individuals A, B, then only C is responsible for taking its actions.

I don’t subscribe to the consequentialist view that A & B are responsible for a negative outcome as a result of engaging in commentary and criticism. They may, of course, feel disappointed at the negative outcome.

Similarly, if company C takes a morally justified action to address the criticism, neither A nor B are responsible for making the correct judgement.

Installing Fedora 20 as a paravirtualized guest in XenServer with kickstart

January 6, 2014 by Frederick | 5 Comments

Backstory

Earlier this year, I installed Xen Cloud Platform (XCP) 1.6 on an off-lease Dell CS24-TY with two quad-core Intel Xeon CPUs and 72 GB of RAM. (Those machines are sold by Dell Financial Services and on eBay for unbelievably low prices, for previous generation servers of such capability.) When Citrix open-sourced XenServer, I decided to upgrade XCP 1.6 to the full-featured XenServer 6.2.0 SP1, which added a few formerly-proprietary features for larger pools (which I do not have) and improved guest support for various OSes including Windows 8/Server 2012 among other changes.

At the same time, I started looking at switching domUs from Ubuntu—which worked great, by the way—to Fedora. This was purely due to personal preference, given my penchant for keeping software up-to-date even at the risk of instability, not any failings of Ubuntu.

The issue, of course, is that Fedora isn’t supported out of the box by XenServer or its management console XenCenter, and the wealth of knowledge out there typically pertains to older versions of Fedora and XenServer. Some IT firm even posted a tip to use the “Other install media” option for installing Fedora 20, which practically defeats the point of using Xen virtualization, since that creates a fully-virtualized guest (HVM) rather than a paravirtualized domU.

So I set out to update the existing methods of installing older versions of Fedora as a paravirtualized guest to the new release, Fedora 20 “Heisenbug”.

Credit where credit is due

I’m a sucker for giving credit to everyone and anyone, but in this case a few sources really formed the basis for what I’ve done:

Needless to say, both of these sources are super helpful, although none of them really work out of the box for what I’m doing.

The modified kickstart file

If you’re already experienced and you’re just looking for the kickstart, here it is. For installation instructions, see below.

I’ve created a GitHub repository for these, and I might add files for RHEL/CentOS 6.5 in the future, too.

Here’s the master-branch version: (if you’re adventurous, try the develop-branch version)

The master-branch files are typically tested, while the develop-branch files may introduce new features that are not yet fully vetted. (As the MIT License describes, everything is provided with no guarantees.)

The basic idea behind the post-installation script here is to create a legacy GRUB menu.lst file, which pygrub on XenServer can interpret to boot into a paravirtualized guest.

Update: now, the post-installation script doesn’t bother with a fake menu.lst at all, and instead makes GRUB2 configuration files. Based on reports that making slight alterations to the autogenerated GRUB2 grub.cfg file to make it compatible works, and based on the changes made to pygrub in upstream Xen (which have not yet been integrated into XenServer 6.2.0 SP1), I made the script tweak GRUB2 files and regenerate a grub.cfg with grub2-mkconfig. This should be robust enough to support future kernel updates!

How to use this kickstart (with screenshots!)

This procedure assumes that you’re familiar with XenCenter and have it running already. View the pictures →

This gallery contains 14 photos

January 1, 2014
by Frederick
0 comments

Why do we celebrate the new year at all?

Originally posted on Facebook.

Could I add yet another New Year’s status to the mix? I suppose I could.

Shall I?

Time perplexes me. Specifically, the human tradition of periodically celebrating—”annually” by the Gregorian calendar—events such as our births, and non-events such as the rollover into another cycle of the calendar.

Continue Reading →

December 29, 2013
by Frederick
0 comments

On one of my sites running WordPress, Akismet (and other antispam plugins) is not installed. In some ways, it has served as a honeypot, revealing interesting tidbits about how spambots work.

Fascinatingly, there were several hundred of these comments, all identical to each other. They look like templates for comments to be generated by spam-producing software, except that the software never processed the templates and posted them verbatim instead:

July 25, 2013
by Frederick
0 comments

What to put on a new laptop for college

Here’s a typical question that new college freshmen ask (paraphrased and combined):

If I bring my Windows laptop from home or buy a new one, will people at Penn troubleshoot and set it up or something? What programs should be installed on it?

This post summarizes my basic recommendations for how to prep your laptop for college, and I’ll briefly clarify what IT services are offered to students at Penn. If you want the TL;DR version, just skim each of the bolded bullets.

Continue Reading →