- In 2017 and prior, Purdue University Northwest reported qualified CHARGES in Box 2.
- Effective January 1, 2018 the Internal Revenue Service (IRS) is requiring universities to begin reporting what students paid towards qualified educational expenses in Box 1 of the 1098-T.
- Please Note: Payments made between January 1 and December 31, 2018 towards Spring 2018 tuition, may not appear on Form 1098-T for 2018 due to the following reason:
- Spring 2018 qualified tuition & related expenses were billed in November 2017 and reported in Box 2 of the 2017 Form 1098-T.
- Since the Qualified Tuition was reported in 2017, we cannot include payment for these items in 2018 in order to avoid duplicate reporting to the IRS in a transition year.
- For this reason, we suggest including copies of your 2017 & 2018 1098-Ts as well as your account payment history when preparing your 2018 taxes.
- While the transition can be a bit confusing, nothing has been lost or misreported during the transition from reporting in Box 2 in 2017, to reporting payments in Box 1 in 2018.
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
- A student who is eligible to receive a 1098-T can access it online through their myPNW 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 myPNW, 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 myPNW account. To see if you are eligible or to view your Form 1098-T:
- Log into your myPNW.
- Click on the ‘Bills & Payments’ tab.
- Click on 1098T Tax Notification.
- For a printable PDF copy of the 1098-T – select the Bills & Payment Portal (Touchnet Payment System will open in a new window) and click on ‘View’ next to Your latest 1098-T in the Statements box; then click action then view.
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.
- Box 1 represents amounts paid for qualifying tuition and related expenses.
- Box 2 is not reported by Purdue University beginning 2018.
- 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 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.
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.
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.
- 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 review the following resources & websites:
- IRS Publication & Forms: irs.gov/Forms-&-Pubs
- Form 8863 Instructions for Education Credits: irs.gov/uac/about-form-8863
- Form 1040 Instructions: irs.gov/pub/irs-pdf/i1040.pdf
- IRS Information on American Opportunity Credit: irs.gov/publications/p970/ch02.html#en_US_publink1000204381
- IRS Information at Lifetime Learning Credit: irs.gov/publications/p970/ch03.html
- Compare Education Credits & Tuition & Fees Deduction: https://www.eitc.irs.gov/other-refundable-credits-toolkit/compare-education-credits-and-tuition-and-fees-deduction/compare
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.
You can access your 1098T Tax Notification through MyPNW. Once you log in, Bill & Payments, click on 1098-T Tax Notification under Bills & Payments Shortcuts.. 1098T paper notifications will be mailed by the end of January every year. 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.
- Form 8863: Education Credits (Hope and Lifetime Learning) (PDF)
- Publication 970: Tax Benefits for Education (PDF)
- Taxpayer ID Number Form for 1098T (PDF)
Taxpayer ID Number is Required for 1098T
Purdue University Northwest must obtain your correct identifying number to file Form 1098-T, Tuition Statement, with the IRS and to furnish a statement to 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 this form: Taxpayer ID Number Form for 1098T (PDF)