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 1098T

Kisha Simpson's profile image
Kisha Simpson posted 05-21-2026 04:03 PM

Hi All,

Our Foundation is entertaining the idea of awarding gas card to students who are in need.  Would the amount given by the Foundation be reportable on the 1098T? 

Sally Gazza's profile image
Sally Gazza posted 05-22-2026 07:57 AM

We treat gas cards given to students as 1099 income.

Wanda Hernandez's profile image
Wanda Hernandez posted 05-22-2026 08:11 AM

We also treat all payments to students a 1099 income. There are very few exception on taxable income. The only one I encountered is a fellowship grant.

We just started use Tremendous to distribute our gift cards. This tool allows us to set the 1099 indicators. If payment to a single email reach the new IRS threshold of $2000, it will stop the distribution for a w-9.

John Dickey's profile image
John Dickey posted 05-22-2026 09:20 AM

Kisha,

1098-T is for tuition and fees payments.  Being cash gift card, there would not be a way for a student to use that to pay their tuition balance.  In my mind, this would NOT be something reportable on 1098-T.  May want to confirm with institution legal group.  Now, could this be income to the student and reportable on 1099?  There is a $600 reporting threshhold for filing 1099 form for miscellaneous income, so if below that, would not have to do 1099 forms.  Again discussion with institution legal group may be helpful.  Most of us here are not tax experts.

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