my college sent me a 1098-T form. what is it for?

Please keep in mind that a person can only claim an educational tax credit using the 1098T when they actually PAY for educational expenses. If financial aid paid for everything, there is no credit.

They are things of the feminine universe and human nature.

The 1098-T is used when you (or your parent) complete your tax return. It helps your tax preparer determine whether you need to pay tax on some of the aid that you received, or if you are eligible for certain deductions and credits. In general, student aid isn't taxable unless it exceeds the amount of your qualified educational expenses (tuition, fees, books, and supplies, but not room and board). If it does exceed your expenses, then you have to report the excess amount as taxable income. For example, if you received $100 in scholarships, but your expenses were only $75, then you would need to report $25 of your scholarship as taxable income. Since most students don't receive more aid than their expenses, this is fairly unusual. What is much more common is being able to take advantage of a tax credit or deduction. If you paid for expenses out of pocket, you may be able to deduct that from your income (which would reduce the amount of your income that gets taxed), or you may be able to claim a tax credit (which would reduce the amount of tax you pay directly). The most common is the American Opportunity tax credit, which can bring you a credit of up to $2500. With that particular credit, you may get a partial refund even if you don't owe any tax, so even if you weren't required to file a return, it may be a good idea to do it just to claim the credit. If you use a tax preparer, give them the form--they'll know what to do with it. If you do your own taxes and use tax prep software, such as TurboTax, there should be a section that figures the credit for you. You can find full information about this subject at the IRS website, www.irs.gov. Search for Publication 970.

When you do your taxes, you get to deduct any money that you spent on college. You need to use the numbers on that form for that section of your tax return.