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Tax Form FAQs

Important DisclaimeršŸ’” This document is for informational purposes only and does not constitute tax or financial advice. Schools and studen...

Important Disclaimer

šŸ’” This document is for informational purposes only and does not constitute tax or financial advice. Schools and students should consult a licensed tax professional or accountant for guidance on IRS reporting and tax filings.

Frequently Asked Questions (FAQ)

General Questions

1. What is the difference between 1099-K and 1098-T?

  • 1099-K reports business income processed through payment processors like Payabli. It is issued to businesses or individuals receiving payments via third-party networks.

  • 1098-T reports tuition and related educational expenses. It is issued to students to help them claim educational tax benefits.

2. Should Lumion provide these documents?

  • No. Lumion does not issue 1099-K or 1098-T forms.

    • 1099-K is issued by Payabli, with delivery handled by ProPay.

    • 1098-T is issued by the school where the student is enrolled.

3. When does a school receive a 1099-K?

  • If a school collects tuition payments through Payabli and receives more than $600 in a year, Payabli will issue a 1099-K to the school, with forms delivered by ProPay.

4. When does a student receive a 1098-T?

  • Students receive a 1098-T if they paid tuition and fees to an eligible educational institution.

5. Can a student use a 1098-T to reduce taxes?

  • Yes. The 1098-T helps students or their parents claim education tax credits, such as:

    • American Opportunity Credit (AOTC)

    • Lifetime Learning Credit (LLC)

6. Do all students receive a 1098-T?

  • Not necessarily. Some students do not receive a 1098-T if:

    • They receive full tuition scholarships.

    • Their school is not an eligible educational institution.

7. What should a school do if they receive a 1099-K?

  • Schools should consult with a tax professional to determine how to report 1099-K payments as income.

  • Ensure financial records align with the amounts reported on the form.

8. What should a student do if they didnā€™t receive a 1098-T?

  • Contact the school's finance or accounting office.

  • Verify if they meet the eligibility criteria to receive a 1098-T.

9. Does receiving a 1099-K mean a school owes taxes?

  • Not necessarily. A 1099-K only reports transactions; whether taxes are owed depends on how the payments are categorized.

10. Where can I learn more about 1099-K and 1098-T?

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