The 1098-T is a tax form that reports may have access to education expenses you paid during the year
The 1098-T form is a document your school sends to you and the IRS that lists how much you paid for may be able to access college or university costs. It covers tuition, required fees, and course materials — not room, board, or transportation. The form arrives by January 31 each year and covers the previous calendar year.
Schools send a 1098-T to anyone who paid these expenses and was enrolled at least half-time in a degree or certificate program. You use the information on this form to claim education tax credits on your federal return, which can reduce the tax you owe or increase your refund. Not every student gets one — if you paid with only scholarships or grants, or if your school doesn't issue them, you may still be able to claim credits, but you'll report the expenses differently.
Key Takeaways
- The 1098-T reports may have access to education expenses paid in a calendar year and is sent by your school by January 31.
- may have access to expenses include tuition and required fees, but not room, board, books purchased separately, or transportation.
- You use the form to claim the American Opportunity Tax Credit or Lifetime Learning Credit, which can reduce your tax bill.
- If you don't receive a 1098-T, you can still claim education credits by reporting expenses directly on your tax return.
What expenses appear on the 1098-T
The form reports only may have access to education expenses — the costs the IRS allows you to use for tax credits. These include tuition and mandatory fees charged by the school. Some schools also include the cost of required course materials like textbooks if they're bundled into your bill, but this varies by institution.
The 1098-T does not include room and board, even if you live on campus and the school bills you for it. Transportation, insurance, personal supplies, and optional fees are also excluded. If you bought books or materials outside the school's billing system, they won't appear on the form, though you may still be able to claim them if you have receipts and meet other requirements.
The form shows expenses paid in the calendar year, regardless of which term they cover. If you paid spring semester tuition in December, it counts for that year. If you paid it in January, it counts for the next year. This timing matters when you're deciding which year to claim the credit.
The two boxes that matter: Box 1 and Box 2
The 1098-T has two main boxes that affect your taxes. Box 1 shows may have access to tuition and educational expenses paid during the year. Box 2 shows scholarships or grants the school received on your behalf and applied to your bill.
Box 2 is important because scholarships and grants reduce the expenses you can claim for tax credits. If Box 2 shows $3,000 in scholarships and Box 1 shows $5,000 in expenses, you can only use $2,000 of expenses for your credit calculation. The IRS assumes scholarships paid for may have access to expenses first, so they reduce your may be able to access amount.
The form also includes boxes for expenses paid in prior years (Box 5) and scholarships from prior years (Box 6), which explore only if you're using a multi-year credit or if the school is correcting a prior-year form. Most students focus on Boxes 1 and 2.
How the 1098-T connects to education tax credits
The 1098-T itself is not a credit — it's a record of what you paid. You use the information to claim one of two federal education credits: the American Opportunity Tax Credit or the Lifetime Learning Credit. You choose which one benefits you more, and you cannot claim both in the same year for the same student.
The American Opportunity Credit allows you to claim up to $2,500 per student per year if you have at least $4,000 in may have access to expenses. The Lifetime Learning Credit lets you claim up to $2,000 per return (not per student) if you have at least $2,000 in expenses. The credit you choose depends on your income, how many students you're supporting, and whether the student is in their first four years of college.
You report the expenses from your 1098-T on Form 8863 (Education Credits), which then flows to your main tax return. If you don't receive a 1098-T, you can still claim these credits by reporting the expenses yourself, as long as you have documentation like receipts or billing statements.
When you might not receive a 1098-T
Some students don't get a 1098-T even though they paid for college. If your school doesn't issue them, you won't receive one — not all institutions are required to send them, particularly some smaller schools or non-degree programs. If you paid expenses but they fell below your school's reporting threshold, the school may not issue a form. If you received a full scholarship that covered all expenses, the school may not send one because there were no out-of-pocket costs to report.
If you paid with only student loans, you also won't see a 1098-T, because loans are not the same as paying expenses. The form only reports money you actually paid — not money you borrowed. In all these cases, you can still claim education credits if you have receipts or billing statements showing what you paid.
If you think you should have received a 1098-T and didn't, contact your school's financial aid or bursar office. They can tell you whether one was issued and, if so, resend it. If the school confirms they don't issue them, keep your own records of what you paid so you can report it on your tax return.
How to use your 1098-T when filing taxes
When you file your federal return, you'll enter the information from your 1098-T into Form 8863. This form walks you through calculating which credit you can claim and how much. You'll need the amounts from Boxes 1 and 2, your filing status, your income, and information about the student.
If you're claiming the American Opportunity Credit, you'll subtract any scholarships (Box 2) from your expenses (Box 1) to find your may be able to access amount. If you're claiming the Lifetime Learning Credit, you do the same calculation but the credit is per return, not per student. The form then calculates your credit based on your income level — higher incomes reduce or eliminate the credit.
You can file on your own using tax software, which will guide you through entering the 1098-T information, or you can work with a tax professional. Either way, keep a copy of your 1098-T with your tax records for at least three years in case the IRS asks questions.
Frequently Asked Questions
Do I have to claim a credit if I receive a 1098-T?
No. The form is just a record of what you paid. You decide whether to claim a credit based on your situation. If your income is too high or if you didn't have enough expenses, you might choose not to claim one. You can also carry unused credits forward to future years in some cases.
What if my school sent me a 1098-T but I paid with a scholarship?
The scholarship amount should appear in Box 2. Subtract that from Box 1 to find your may be able to access expenses. If the scholarship covered all your costs, your may be able to access amount is zero and you cannot claim a credit that year, even though you received a form.
Can I claim a credit for expenses my parents paid?
Only if you're claimed as a dependent on their return and they paid the expenses. If you're independent, you claim the credit. If your parents paid and claim you as a dependent, they claim the credit. You cannot both claim it for the same expenses in the same year.
What if I paid tuition in December for spring semester classes?
The 1098-T reports it in the year you paid it, not the year you took the classes. So December payment counts for that tax year, even though the classes happen in January. This matters when you're deciding which year to claim the credit.
Can I claim a credit if I don't have a 1098-T?
Yes. You can report the expenses yourself on Form 8863 if you have receipts, billing statements, or other proof of what you paid. The school's failure to send a form doesn't prevent you from claiming the credit — it just means you have to document it yourself.