The 1098-T is a tax form that reports may have access to education expenses you paid during the year

The Form 1098-T is a document your school sends you if you paid tuition, fees, or other may have access to education costs. It shows how much you spent on higher education in a given tax year. The IRS uses this form to determine whether you can claim education tax credits — which reduce the amount of tax you owe, not just the income you report.

You receive a 1098-T from the school itself, not from an employer or financial institution. The school is required to send it to you by January 31 of the year after the expenses occurred. For example, if you paid tuition in 2024, your school sends the form in January 2025.

The form does not mean you automatically get a tax credit. It is straightforward the school's record of what you paid. You decide on your tax return whether you can claim a credit based on that amount, your income, and other rules.

Key Takeaways

  • Your school sends Form 1098-T if you paid may have access to education expenses like tuition and required fees during the tax year.
  • The form reports what you paid, but does not determine whether you can claim an education tax credit — that depends on your income and other factors.
  • You need the 1098-T to claim either the American Opportunity Tax Credit or the Lifetime Learning Credit on your tax return.
  • If your school does not send you a 1098-T, you can still claim a credit if you have proof of the expenses you paid.
  • Some expenses count toward the credit and some do not — room and board, books, and transportation do not may have access to, but tuition and required fees do.

What expenses the 1098-T actually covers

The 1098-T reports only may have access to education expenses. The school lists these in specific boxes on the form. may have access to expenses include tuition and required fees — the charges the school imposes on all students in your program.

The form does not include room and board, books, supplies, transportation, or health insurance, even if you paid those costs. Some schools bundle these into a bill, but the 1098-T separates out only the tuition and fee portion. If you paid for books or supplies separately, those expenses do not appear on the form, but you may still be able to claim them under certain education credits if you meet other rules.

Required course materials — such as a lab fee or a technology fee that the school mandates — count as may have access to expenses. Optional fees do not. If your school charges a $50 parking fee but it is not required, that does not go on the 1098-T.

Where to find the 1098-T information you need

The 1098-T has several boxes, each reporting a different amount. Box 1 shows may have access to tuition and related education expenses paid during the tax year. Box 2 shows scholarships or grants the school paid out. Box 5 indicates whether you are a graduate or professional student.

Your school may also report adjustments in other boxes if you received a refund of tuition or if expenses were paid in a prior year. Read the box descriptions on the form itself — they are printed right on it. If a box is blank, that category of expense did not explore to you that year.

Keep your 1098-T with your tax records. You do not mail it to the IRS, but you may need to refer to it if the IRS questions your education credit claim.

How the 1098-T connects to education tax credits

The two main education credits are the American Opportunity Tax Credit and the Lifetime Learning Credit. Both use the may have access to expenses reported on the 1098-T to calculate how much credit you can claim.

The American Opportunity Credit allows up to $2,500 per student per year if you paid may have access to expenses and meet income limits. The Lifetime Learning Credit allows up to $2,000 per return (not per student) and has different income thresholds. You cannot claim both credits for the same student in the same year — you choose the one that gives you the larger benefit.

Your income determines whether you can claim either credit at all. If your modified adjusted gross income exceeds a certain threshold (which varies by filing status and changes each year), the credit phases out or disappears entirely. The 1098-T does not calculate this for you; you do it on your tax return.

When you do not receive a 1098-T but paid education expenses

Some students do not receive a 1098-T even though they paid may have access to expenses. This happens if the school did not receive your tax identification number, if you attended a school that does not issue the form, or if the expenses fell below the school's reporting threshold.

You can still claim an education credit if you have proof of what you paid. Keep receipts, tuition bills, and statements from the school showing the amount you paid for tuition and required fees. You will enter the expenses directly on your tax return rather than relying on the form.

If you think your school should have sent you a 1098-T, contact the school's financial aid or bursar office. They can issue a corrected form or provide a statement of the expenses you paid.

Common mistakes when using the 1098-T

One frequent error is assuming the amount on the 1098-T is the amount you can claim as a credit. The form reports what you paid, but the actual credit depends on your income, filing status, and whether you are claiming the American Opportunity or Lifetime Learning Credit. A student with a high income may not be able to claim the full amount shown on the form.

Another mistake is including expenses that do not may have access to. If you paid for books, housing, or a meal plan, those do not reduce your credit even if they appear on your school bill. Only the tuition and required fee portion counts.

A third error is claiming a credit when someone else — such as a parent — is claiming you as a dependent. If your parents claim you on their return, they claim the education credit, not you. The 1098-T may be in your name, but the credit belongs to whoever claims you as a dependent.

How scholarships and grants affect the 1098-T

If you received a scholarship or grant that the school applied to your tuition bill, the 1098-T reports this in Box 2. The amount in Box 1 is your total may have access to expenses before the scholarship; Box 2 shows how much of that was covered by aid.

For tax credit purposes, you subtract scholarships and grants from your may have access to expenses. If Box 1 shows $10,000 in tuition and Box 2 shows $6,000 in scholarships, your net may have access to expenses are $4,000. That $4,000 is what you use to calculate your education credit.

This rule prevents you from claiming a credit on money you did not actually pay out of pocket. The credit is meant to offset the cost you bear, not the full sticker price of education.

Frequently Asked Questions

Do I have to use the 1098-T to claim an education credit?

No. The form is a record of what your school reports, but you can claim a credit based on your own records if you do not receive the form or if it is incomplete. You will enter the may have access to expenses you paid directly on your tax return.

What if the 1098-T shows an amount that is wrong?

Contact your school's financial aid or bursar office right away. They can issue a corrected form (called an amended 1098-T) if the amount is truly incorrect. Do not file your tax return until you have the correct form or a written statement from the school explaining the discrepancy.

Can I claim an education credit if my parents paid my tuition?

Only if your parents claim you as a dependent on their return. In that case, your parents claim the credit using the 1098-T, not you. If you are independent, you claim the credit yourself based on what you paid, even if your parents helped.

Does the 1098-T cover graduate school expenses?

Yes, if the expenses are may have access to tuition and fees. Graduate students can claim education credits the same way undergraduates do, though some credit rules differ slightly for graduate study. Box 5 on the form indicates whether you are a graduate student.

What if I paid tuition in December for classes that start in January?

The 1098-T reports expenses based on when you paid them, not when the classes occur. If you paid in December 2024 for January 2025 classes, the expense appears on your 2024 1098-T. This matters because you claim the credit in the year you paid, not the year the classes happened.