Tax Credits for Education
The IRS allows tax credits for qualified educational expenses each year. Purdue University will provide you with a Form 1098-T to assist you in filing these expenses.
Education Tax Credit FAQs
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.
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
Purdue Northwest cannot determine if any individual student is eligible for the credit; you will need to get advice from the IRS or a tax advisor.
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 fee and other miscellaneous fees are generally not qualifying expenses for tax purposes.
Please reference IRS Publication 970 Tax Benefits for Education for additional guidance . Purdue University cannot legally provide tax advice. Please consult with a qualified tax preparer or the IRS if you have tax-related questions.
- Box 1 represents amounts paid for qualifying tuition and related expenses.
- Effective in 2018 as regulated by the IRS, Box 2 is no longer reported by Purdue University.
- 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 third party 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 at 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.
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.
Share it with your tax preparer and keep it for your personal records. 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 (available from your TouchNet Portal), along with other personal receipts (e.g. books and supplies) to calculate your tax credits and deductions.
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 additional support, please refer to the following websites:
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.
Yes, Purdue University Northwest must obtain your correct identifying number to file Form 1098-T Tuition Statement with the IRS and furnish a statement for you. This will be your Social Security number (SSN) or, if you are not eligible to obtain an SSN, your individual taxpayer identification number (ITIN).
If you fail to furnish your correct SSN or ITIN to Purdue University Northwest, the IRS may impose a penalty of $50 unless your failure is due to reasonable cause and not to willful neglect.
If you have not provided this information, please complete the Taxpayer ID Number Form for 1098T (PDF)
You may print a PDF of the necessary forms from these websites: