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Tax Form FAQs

Important Disclaimer

đź’ˇ 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 didn’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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