What is a Form 1098-T?
- Colleges and universities are required under Internal Revenue Code Section 6050S to issue the Form 1098-T for the purpose of determining a tax payer’s eligibility for various tax credits and/or deductions.
Does every student get a Form 1098-T?
- Purdue University must file a Form 1098-T for each student enrolled for the given calendar year and for whom a reportable transaction is made. However, the IRS does not require Purdue University to provide a Form 1098-T for:
- Courses for which no academic credit is offered, even if the student is otherwise enrolled in a degree program
- Nonresident alien students
- Students whose qualified tuition and related expenses are entirely waived or paid entirely with scholarships and/or grants
- Students whose expenses are covered by a formal 3rd party billing arrangement
My Student Center says I am “not eligible to receive a 1098-T form”. Why?
- Depending on your particular situation, Purdue University may not be required to produce a Form 1098-T for you. See exceptions above.
How do I get my Form?
- A student who is eligible to receive a 1098-T can access it online through their myPurdue account as soon as it is available each year for which they are eligible. 1098-T forms are required to be available by January 31. To view your 1098-T electronically, you will need to log into your myPurdue, click on the ‘Bills & Payments’ tab and then click on 1098T Tax Notification. You will be able to view your 1098-T statements electronically for as long as you have access to your myPurdue account. To see if you are eligible or to view your Form 1098-T:
- Log into your myPurdue.
- Click on the ‘Bills & Payments’ tab.
- Click on 1098T Tax Notification.
- For a printable PDF copy of the 1098-T – select the Bills & Payments Tab and click on ‘View My Balance’; then click on eStatements and view the 1098-T below.
What fees are qualifying for tax purposes?
- For purposes of the tuition and fees deduction, qualified education expenses are tuition and certain related expenses required for enrollment or attendance at an eligible educational institution. The housing, meal plan, orientation, Payment Plan and other miscellaneous fees are generally not qualifying expenses for tax purposes. Please reference IRS Publication 970 Tax Benefits for Education for additional guidance (link to IRS Publication & Forms database provided below). Purdue University cannot legally provide tax advice. Please consult with a qualified tax preparer or the IRS if you have tax-related questions.
What amounts are reported on Form 1098-T?
- Box 1 amounts paid are not reported by Purdue University.
- Box 2 represents amounts billed for qualified tuition and related expenses netted against any reductions (Fee Waivers, Remissions) in charges for qualified tuition and related expenses.
- Box 4 represents reductions made to amounts billed for qualified tuition and related expenses that were reported for a prior calendar year.
- Box 5 represents the total amount of scholarships, grants or 3rd Party Sponsor Credits that were processed for the payment of qualified tuition and related expenses.
- Box 6 represents the amount of reductions or refunds made for scholarships or grants that were reported for a prior year.
- Box 8 is only checked if you have been at least a half-time student (6 credit hours) for a least one academic period that began during the calendar year.
- Box 9 is checked if you were enrolled as a graduate student for at least one academic period during the calendar year for which reporting is required.
Why is box 1, payments, blank on my 1098-T?
- The IRS gives institutions the option to report either payments in box 1 OR amounts billed in box 2. Purdue University opts to report amounts billed in box 2. To calculate payments made to Purdue University, see the official Statement of Account for the semesters within the appropriate tax year. Students can access their Statement of Account through their TouchNet account by clicking ‘View My Balance’ under the Bills & Payments tab in their myPurdue account and then selecting eStatements.
What are the instructions for the Form?
- To help you figure your education credit, you should receive Form 1098-T.
Generally, an eligible educational institution must send Form 1098-T to each enrolled student postmarked by January 31. An institution may choose to report either payments received (box 1), or amounts billed (box 2), for qualified education expenses.
Purdue University reports amounts billed in box 2 according to Regulation section 1.6050S-1(b)(2)(ii)(B). However, the amount in box 2 of Form 1098-T might be different than what you actually paid. For more information see links below. In addition, your Form 1098-T should give you other information for that institution, such as adjustments made for prior years, scholarships or grants, reimbursements or refunds, and whether you were enrolled at least half-time or were a graduate student.
Did you send a copy of this form to the IRS?
- Yes. Section 6050S of the Internal Revenue Code, as enacted by the Taxpayer Relief Act of 1997, requires institutions to file information returns to assist taxpayers and the Internal Revenue Service in determining eligibility for the American Opportunity and Lifetime Learning education tax credits. The annual deadline to file the required tax information electronically is March 31, although data may be transmitted earlier.
What am I supposed to do with the 1098-T form?
- Keep it for your personal records and share it with your tax preparer; Purdue University sends your 1098-T information to the IRS. The information contained in the 1098-T will help you to determine if you may claim various tax credits and/or deductions for qualified educational expenses. Please be aware that the 1098-T captures financial information on a calendar year basis (January 1 –December 31) and you will likely need your statements of account (also available from your TouchNet Portal) and other personal receipts (eg. books & supplies) to calculate your tax credits and deductions.
Which expenses qualify for the American Opportunity, or Lifetime Learning Credits?
- Purdue University cannot legally provide tax advice. Please consult with a qualified tax preparer or the IRS if you have questions concerning how to use this form on your taxes. For more information see the Additional Resources below.
Who can claim an Education Credit?
- You may be able to claim an education credit if you, your spouse, or a dependent you claim on your tax return was a student enrolled at or attending an eligible educational institution. If a student is claimed as a dependent on another’s tax return, only the person who claims the student as a dependent can claim a credit for the student’s qualified education expenses. If a student is not claimed as a dependent on another person’s tax return, only the student can claim the credit. If you claim an exemption on your tax return for an eligible student who is your dependent, treat any expenses paid (or deemed paid) by your dependent as if you had paid them. See additional restrictions for claiming the credit in the instructions to Form 8863 at irs.gov/pub/irs-pdf/i8863.pdf.
- IRS Publication & Forms: www.irs.gov/Forms-&-Pubs
- Form 8863 Instructions for Education Credits: www.irs.gov/uac/about-form-8863
- Form 1040 Instructions: www.irs.gov/pub/irs-pdf/i1040.pdf
- IRS Information on American Opportunity Credit: www.irs.gov/publications/p970/ch02.html#en_US_publink1000204381
- IRS Information at Lifetime Learning Credit: www.irs.gov/publications/p970/ch03.html