The 1098-T reports education costs you paid during the year so you can claim a tax credit

The Form 1098-T is a document your school sends to you and the IRS that lists may have access to education expenses you paid in a calendar year. It exists so you can claim either the American Opportunity Tax Credit or the Lifetime Learning Credit on your tax return — both reduce the federal income tax you owe, dollar for dollar, based on what you spent on tuition and fees.

You do not need a 1098-T to claim these credits. The form is a record-keeping tool, not a requirement. If your school did not send you one but you paid may have access to expenses out of pocket, you can still claim the credit by reporting those expenses yourself on your return. However, if your school did send you a 1098-T, the IRS expects you to report the amounts shown on it.

The form arrives by mail or email in January or February for the prior tax year. If you are a dependent claimed on your parent's return, your school sends the 1098-T to you, but your parent is the one who uses it to claim the credit — the credit goes to whoever paid the bill.

Key Takeaways

  • The 1098-T shows may have access to tuition and fees paid during the year, which you use to claim a federal tax credit that reduces what you owe.
  • Schools send the form to students, but parents claim the credit if they paid the bill and claim the student as a dependent.
  • The form reports only tuition and fees — not room, board, books, supplies, or student loan interest, which have different tax treatment.
  • You can claim the credit without a 1098-T if you have receipts and records, though the IRS will compare your return to any 1098-T the school filed.
  • The two credits available — American Opportunity and Lifetime Learning — have different income limits and rules about how many years you can use them.

What expenses appear on the 1098-T and what does not

Box 1 of the 1098-T shows may have access to tuition and fees paid during the tax year. This includes tuition, course fees, and lab fees charged by the school. It does not include activity fees, parking, or health insurance, even if the school bills you for them.

Box 2 shows scholarships or grants the school paid out to you during the year. This matters because scholarships reduce the amount of your own money you actually spent. If you received a $5,000 scholarship and paid $8,000 in tuition, your net cost was $3,000 — and that is the number you use to calculate your credit.

The form does not report room and board, books, supplies, computers, or transportation — even though these are real education costs. Those expenses do not may have access to for the 1098-T credits. Student loan interest is deductible on your return, but it is reported on Form 1098-E, not the 1098-T.

Some schools also report adjustments in Box 3 if you received a refund of may have access to expenses during the year. If you paid tuition in December and got a refund in January, the school may reduce the amount shown on the 1098-T to reflect that.

Who receives a 1098-T and when

Your school is required to send you a 1098-T if you paid at least $1 in may have access to tuition and fees during the year and the school is an may be able to access educational institution — which includes most accredited colleges, universities, and vocational schools. The school also files a copy with the IRS.

You will receive the form by January 31 of the year after you paid the expenses. If you paid tuition in 2024, you get the 1098-T in January 2025. If your school did not send you one by early February, contact the registrar or bursar's office to ask whether one is coming or whether you need to request it.

If you are a dependent, the school still sends the form to you at your address, not to your parents. Your parents will need to see the form to claim the credit on their return, so make sure you share it with them or give them the numbers from it.

Some students do not receive a 1098-T even though they paid tuition. This happens if the school is not an may be able to access institution, if you paid through a third party (like an employer reimbursement program), or if the school has not yet processed your payment. In these cases, you can still claim the credit if you have receipts and records showing what you paid.

How the 1098-T connects to the two education tax credits

The American Opportunity Tax Credit is worth up to $2,500 per student per year and covers tuition and fees for the first four years of undergraduate study. You can claim it for up to four tax years per student. The credit phases out at higher incomes — the exact income limit depends on your filing status.

The Lifetime Learning Credit is worth up to $2,000 per return (not per student) and covers tuition and fees for any year of undergraduate or graduate study, with no four-year limit. It phases out at a different income level than the American Opportunity credit.

You cannot claim both credits for the same student in the same year. If you have multiple students, you can use American Opportunity for one and Lifetime Learning for another, but each student gets only one credit per year. The 1098-T shows the expenses; you decide which credit makes sense based on your income, the student's year in school, and whether you have other education costs that year.

What to do if the 1098-T amount looks wrong

If the tuition amount on the form does not match what you paid, contact your school's registrar or bursar first. Schools sometimes report amounts that exclude scholarships, or they may have made a data entry error. Ask them to send you an amended 1098-T (Form 1098-T with a corrected box) if the original was wrong.

If you paid tuition but your school did not send a 1098-T, ask the school why. They may not have processed your payment yet, or they may not consider your program may be able to access. If the school confirms it will not send one, gather your own records — receipts, cancelled checks, credit card statements, or tuition bills — and report the expenses yourself on your tax return.

Do not ignore a 1098-T you think is wrong. The IRS receives a copy too, and if your return does not match the form the school filed, the IRS may send you a notice asking you to explain the difference. It is easier to resolve the issue with the school now than to deal with the IRS later.

Reporting the 1098-T on your tax return

If you are claiming the American Opportunity Credit, you report the may have access to expenses on Form 8863 (Education Credits), which then feeds into your main tax return. The form asks you to enter the expenses from the 1098-T (or from your own records if you do not have a form). You then calculate the credit based on your income and the expenses you report.

The Lifetime Learning Credit uses the same Form 8863. You choose which credit to claim based on your situation, and the form walks you through the income limits and calculations.

If you use tax software, it will ask you for the 1098-T information and handle the form for you. If you file by hand or with a tax preparer, bring the 1098-T with you so they have the numbers in front of them.

Frequently Asked Questions

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

No. The 1098-T is information about what you paid; claiming the credit is your choice. If your income is too high to claim the credit, or if claiming it would reduce other tax benefits you receive, you might choose not to claim it. However, if the IRS sees a 1098-T filed in your name, they may contact you if your return does not report it.

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

Yes, if they claim you as a dependent on their return. The credit goes to whoever paid the bill and claims the student as a dependent. The school sends the 1098-T to you, but your parents use the information to claim the credit on their return.

What if I paid tuition with a student loan?

You can still claim the education credit for the tuition you paid, even if you borrowed the money. The credit is based on expenses paid, not on how you paid them. Student loan interest is deductible separately on your return, reported on Form 1098-E.

Can I claim the credit for expenses my employer reimbursed?

No. If your employer paid for tuition or reimbursed you for it, those expenses do not count toward the credit. Only expenses you paid out of your own pocket, or that your parents paid on your behalf, may have access to.

What if my school sent me a 1098-T but I paid less than what it shows?

Contact the school and ask them to verify the amount. They may have included fees you did not know about, or they may have made an error. Request a corrected form if the original is wrong. If the school confirms the amount is correct but you dispute it, you can report the lower amount you actually paid on your return and keep your receipts in case the IRS asks.