FAQ: Paying Taxes as an Online Student
Have you been wondering how this income tax season might impact you as an online student (or as the parent of an online student)? We get a lot of questions about taxes from our Accelerated Pathways students, so we reached out to our resident expert, Student Services Manager Olivia Byrd, to get answers.
(Of course, here at Accelerated Pathway, our expertise is education, not taxes, so please check with your personal tax expert for any tax advice or specific questions about your situation.)
Here are a few of your most frequently asked questions about paying taxes as an Accelerated Pathways student:
“Are my Pearson Accelerated Pathways tuition expenses or courses/book costs eligible for deduction?”
Some of your college expenses (such as ALEKS, CLEP, DSST, and certain other college courses) may be deductible, but Pearson Accelerated Pathways doesn’t impact your taxes the same way a college or university would. Since we're not a credit-granting institution as defined by the IRS, we aren’t eligible to issue you a 1098-T form for deductible education expenses. Please check with your personal tax expert regarding the eligibility of any of your other education expenses.
“Does Pearson Accelerated Pathways send out 1098-T forms?”
No, sorry! Pearson Accelerated Pathways does not meet the IRS criteria to issue a 1098-T. This is because we work alongside colleges and universities rather than granting degrees ourselves.
“Can Pearson Accelerated Pathways be paid with 529 savings funds?”
Eligible expenses vary from plan to plan, so you should check with your fund's plan administrator about what educational expenses are deductible in your state. Let them know that Pearson Accelerated Pathways is not a Title IV institution. With this information, they can check Pearson Accelerated Pathways' eligibility and what plan category your expenses would fall under, if eligible.
“What documents can you provide me for tax purposes?”
Please check with your personal tax expert regarding the eligibility of all your education expenses. If you need any documentation for tax purposes, we can provide invoices and a Proof of Enrollment. If you need it, our EIN (Employer Identification Number) is 22-1603684.
“Are tuition benefits through my employer taxed?”
Federal income tax law allows for several tax benefits for education, including potential exclusions or deductions for tuition assistance. If you’re curious about how the current tuition benefits tax law might apply to you, you can read more on the IRS website. Please check with your personal tax expert regarding the eligibility of all your education expenses, credits, and deductions.
“Are the tuition expenses of the school I want to graduate from eligible for deduction? What about my books?”
Yes. In almost every instance, your college will meet the IRS criteria for tuition expense deductions. You can expect your college to issue a 1098-T by January 31st if you’ve had tuition expenses in the previous year. For specific questions about books or other non-tuition expenses at your school, we’d suggest checking with your personal tax preparer.
If you have any more questions, please reach out to our fantastic student services team by calling (866) 989-5432. If you aren’t currently a student with Pearson Accelerated Pathways, but you’d like to learn more about how our program works, welcome! Take a few moments to find out if we’re a good fit to help you achieve your college goals.