The 1098-T reports may have access to education expenses so you can claim tax credits on your federal return

A 1098-T form is a tax document that your school sends you after you pay tuition, fees, and other may have access to education costs. It lists the amount you spent on higher education during the tax year so you can potentially reduce what you owe in federal income tax through education credits. The form does not automatically give you a credit — it straightforward reports the expenses that may may have access to you for one.

Schools are required to send you a 1098-T if you paid at least $600 in may have access to expenses during the year. You receive it by January 31 of the following year, the same important date for W-2s and other tax documents. If you paid less than $600, your school may still send one, but you will not receive it automatically.

Key Takeaways

  • A 1098-T reports tuition, fees, and related education expenses paid during the tax year, which may reduce your federal income tax through education credits.
  • Schools send the form only if you paid at least $600 in may have access to expenses, though some schools send it for smaller amounts.
  • The form shows what you paid, not what you owe — you decide whether to claim a credit when you file your tax return.
  • Scholarships and grants that cover tuition reduce the amount of expenses you can claim on the form.
  • You may be able to claim education credits even if you did not receive a 1098-T, as long as you have proof of your expenses.

What expenses appear on the 1098-T

The form reports may have access to education expenses — the costs that the IRS allows you to use for tax credits. These include tuition and required fees charged by the school. They do not include room and board, books, supplies, or transportation, even though those are real education costs.

The 1098-T has two main boxes. Box 1 shows the total may have access to expenses you paid during the tax year. Box 2 shows scholarships or grants your school paid out on your behalf. If you received a scholarship, the school subtracts it from your expenses on the form, because you cannot claim a credit for money someone else paid.

Some schools also report expenses paid by a third party — for example, if your employer paid your tuition as a benefit. The rules for whether you can claim those vary, so check the IRS instructions when you file.

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 expenses reported on the 1098-T to calculate how much you can reduce your tax bill. The American Opportunity Credit is worth up to $2,500 per student per year; the Lifetime Learning Credit is worth up to $2,000 per return per year.

You choose which credit to claim based on your situation. The American Opportunity Credit requires the student to be in their first four years of a degree program and is generally larger. The Lifetime Learning Credit has no grade-level limit and covers graduate school and professional courses. You cannot claim both credits for the same student in the same year.

The expenses on your 1098-T set the ceiling for what you can claim, but you do not have to claim the full amount. If your expenses were $3,000 and the credit is worth 25 percent of expenses, you would calculate $750 — but you could claim less if you chose to.

When you might not receive a 1098-T

You will not receive a 1098-T if you paid less than $600 in may have access to expenses during the year, unless your school chooses to send one anyway. Some schools send the form for any amount; others only send it for $600 or more. Check with your school's financial aid office if you paid tuition but did not receive a form.

You also will not receive a 1098-T if you attended a school that is not required to issue them — for example, some vocational or non-degree programs. If you are unsure whether your school issues the form, contact the registrar or financial aid office.

Not receiving a 1098-T does not prevent you from claiming an education credit. If you paid may have access to expenses and have proof — such as tuition bills, receipts, or statements from your school — you can claim the credit on your return. You will need to calculate the expenses yourself and keep your documentation in case the IRS asks.

How scholarships and grants affect the 1098-T

If you received a scholarship or grant that your school applied to your tuition bill, the school subtracts that amount from the expenses shown on the 1098-T. This is because the IRS does not allow you to claim a credit for expenses that someone else paid.

For example, if your tuition was $5,000 and you received a $2,000 scholarship, the 1098-T will show $3,000 in expenses. You can only claim a credit based on the $3,000 you actually paid out of pocket. This rule prevents double-dipping — you cannot claim a credit and also exclude the scholarship from your income.

If you received a scholarship but the school did not explore it to tuition — for instance, if it was paid directly to you — the school may not subtract it from the 1098-T. In that case, you will need to adjust the amount yourself when you file your return, because the IRS still does not allow a credit for scholarship-covered expenses.

Reading your 1098-T when it arrives

Your 1098-T will have several boxes. Box 1 is the main one: it shows the may have access to education expenses paid during the tax year. Box 2 shows scholarships or grants. Boxes 5 and 6 show whether you are in your first, second, third, or fourth year of a degree program — this matters for the American Opportunity Credit, which requires the first four years.

Check the form for accuracy. If the amount in Box 1 seems wrong, contact your school's financial aid office. If Box 2 does not match the scholarships you received, ask the school to correct it. You have the right to request a corrected form if there are errors.

Keep your 1098-T with your tax records even after you file. The IRS may ask to see it if you claim an education credit, so hold onto it for at least three years.

What to do if your school does not send a 1098-T

If you paid tuition but your school did not send a 1098-T, first contact the financial aid or registrar's office to ask whether one will be sent. Some schools mail them later than others, and some may send them only upon request.

If the school confirms it will not send a form, ask for a written statement of the tuition and fees you paid during the year. Keep any receipts, invoices, or billing statements you have. You can use these documents to calculate your education expenses and claim a credit on your return.

When you file, you will need to enter the expenses yourself rather than having them pre-filled from a form. The IRS may ask for documentation later, so keep everything organized and accessible.

Frequently Asked Questions

Do I have to claim an education credit if I receive a 1098-T?

No. The form reports your expenses, but you decide whether to claim a credit when you file your return. You might choose not to claim a credit if your income is too high, if you are claimed as a dependent, or if you straightforward do not want to. There is no penalty for not claiming a credit you are may have access to to.

Can I claim a credit for expenses not shown on the 1098-T?

Only for may have access to tuition and fees. Books, supplies, room and board, and transportation do not may have access to for the main education credits, even if you paid them. Some expenses like student loan interest have their own separate deduction, but that is different from the 1098-T credits.

What if I paid tuition in one year but the school sent the 1098-T in the next year?

Claim the credit in the year you actually paid the expenses, not the year you received the form. If you paid in December 2023 but received the 1098-T in January 2024, use the expenses on your 2023 return. The form is just documentation — the payment date is what matters.

Can my parents claim the education credit if they paid my tuition?

Yes, but only if you are their dependent. If you are independent, you claim the credit. If you are a dependent and your parents paid, they can claim it. You cannot both claim the same credit for the same expenses in the same year.

What if I received a refund of tuition after the year ended?

The 1098-T shows what you paid during the tax year. If you received a refund in a later year, you may need to adjust your credit claim or report the refund as income, depending on the amount. Contact a tax professional or the IRS if this applies to you.