The Form 1098-T reports education expenses you paid during the year

A Form 1098-T is a tax document that reports may have access to education expenses — tuition, fees, course materials — that you or a dependent paid to a school during the tax year. The school sends it to you and the IRS to help you claim education tax credits on your federal return.

The form itself does not give you money or reduce your taxes automatically. It is a record of what you spent. You use the information on it to see whether you can claim either the American Opportunity Tax Credit or the Lifetime Learning Credit, both of which can lower your tax bill if you meet the income and enrollment requirements.

Not every school sends a 1098-T, and not every education expense appears on one. The form covers only expenses paid to an may be able to access school — typically a college, university, or vocational program accredited by the U.S. Department of Education. It does not cover room and board, books you bought separately, or transportation.

Key Takeaways

  • Schools send Form 1098-T to report may have access to tuition and education fees you paid during the tax year.
  • The form shows expenses paid by you, your spouse, or a dependent you claim on your return.
  • You use the 1098-T information to determine whether you can claim an education tax credit and how much.
  • The school mails the form by January 31, and you should check it for accuracy against your own records.
  • If you paid expenses but did not receive a 1098-T, you can still claim the credit using your own documentation.

Who receives a Form 1098-T and when

The school where you or your dependent is enrolled sends the 1098-T to you if you paid may have access to education expenses during the calendar year. You should receive it by January 31 of the following year — the same important date schools use to send W-2s to employees.

You will receive the form only if the school is required to issue one. Schools that participate in federal student aid programs (those that accept FAFSA) must send a 1098-T if you paid at least $1 toward may have access to expenses. Some smaller schools or non-accredited programs do not issue the form at all, even if you paid tuition.

The form goes to whoever paid the bill. If you paid tuition for your child, the school sends it to you. If your child paid it themselves, the school sends it to them. If you and your child split the cost, the school typically sends the form to whoever they have on file as the account holder, so you may need to contact the school to clarify who paid what.

What expenses appear on the Form 1098-T

The 1098-T reports only may have access to education expenses — a specific list defined by the IRS. These include tuition and mandatory fees required to enroll or attend. They do not include optional fees, lab fees, or activity fees unless the school considers them mandatory for all students in your program.

Course materials — textbooks, supplies, equipment — appear on the form only if the school bundles them into the tuition charge or if you bought them directly from the school as part of your bill. If you bought a textbook at the campus bookstore or online separately, it does not show on the 1098-T, even though you may be able to claim it as a may have access to expense using your own records.

Room and board, transportation, health insurance, and student loan interest do not appear on the 1098-T. Neither do expenses for a course that is not part of a degree or certificate program, or for a student who is not enrolled at least half-time. The form reflects only what the school considers may have access to tuition and fees.

How to read the boxes on your Form 1098-T

The 1098-T has several numbered boxes. Box 1 shows may have access to tuition and education fees the student paid during the year. Box 2 shows scholarships or grants the school paid out — this matters because scholarships reduce the expenses you can claim for a credit. Box 5 indicates whether the student was enrolled at least half-time, which is required for most education credits.

Boxes 3 and 4 relate to adjustments the school made — for instance, if you received a refund of tuition after the year ended, or if the school corrected a prior-year amount. Box 6 shows whether the student is a graduate or professional student, which affects which credits you can claim.

The form also has a checkbox for whether the student was a U.S. citizen or resident alien — a requirement for claiming education credits. Read through all the boxes and compare them to your own records. If the amount in Box 1 does not match what you paid, or if Box 2 shows scholarships you did not receive, contact the school's financial aid office to request a corrected form.

The difference between the American Opportunity and Lifetime Learning credits

The two main education tax credits both use information from the 1098-T, but they work differently and have different limits. The American Opportunity Tax Credit is worth up to $2,500 per student per year and is available only if the student is in their first four years of a degree program and enrolled at least half-time. Part of this credit is refundable, meaning you can get money back even if you owe no tax.

The Lifetime Learning Credit is worth up to $2,000 per return (not per student) and has no enrollment-time limit — you can claim it for graduate school, professional certifications, or courses to improve job skills. It is not refundable, so it can only reduce the tax you owe.

You cannot claim both credits for the same student in the same year. You choose whichever one gives you the larger benefit. If you have multiple students in school, you can claim the American Opportunity Credit for one and the Lifetime Learning Credit for another in the same year.

What to do if you do not receive a Form 1098-T

If you paid may have access to education expenses but the school did not send you a 1098-T, you can still claim an education credit. You will need to gather your own documentation: receipts, tuition bills, bank statements, or a letter from the school showing what you paid.

Contact the school's financial aid or registrar office first. They may have failed to send the form, or they may not be required to send one because they do not participate in federal student aid. Ask them to provide a written statement of the may have access to expenses you paid. If they cannot or will not, keep the documentation you have — your cancelled checks, credit card statements, or receipts — and report the expenses on your tax return when you claim the credit.

The IRS does not require you to attach the 1098-T to your return, and you do not need one to claim the credit. The form is a convenience. What matters is that you have a record of what you actually paid and that the expenses meet the IRS definition of may have access to.

Checking your 1098-T for errors

When you receive the form, compare the amounts in Box 1 and Box 2 to your own records. Check that the student's name and Social Security number are correct — errors here can delay your refund or cause the IRS to reject your claim. Verify that the school name and address are right.

If you spot an error, contact the school when ready. Ask them to issue a corrected form, which they will label as a "corrected" 1098-T. The school will send the corrected version to you and the IRS. Do not file your tax return until you have the corrected form — filing with wrong information can trigger an IRS notice later.

If the school refuses to correct an obvious error, or if you believe the amount reported is wrong, document your complaint in writing and keep a copy. Then file your return using the correct amount based on your own records. You may want to include a note with your return explaining the discrepancy, though this is not required.

Frequently Asked Questions

Can I claim an education credit if my income is too high?

No. Both the American Opportunity and Lifetime Learning credits phase out at higher income levels. For 2023, the American Opportunity Credit phases out between $80,000 and $90,000 for single filers and $160,000 to $180,000 for married filing jointly. The Lifetime Learning Credit phases out between $59,000 and $69,000 for single filers and $118,000 to $138,000 for married filing jointly. These income limits change each year.

What if my child paid their own tuition — do I still get the credit?

Only if you claim them as a dependent on your return. If your child paid the tuition and you do not claim them as a dependent, they can claim the credit themselves if they meet the income limits. If you do claim them as a dependent, you claim the credit, not them.

Does the 1098-T include student loan interest?

No. Student loan interest is reported on a different form called the 1098-E. You claim student loan interest as a deduction separate from the education credits. The 1098-T covers only tuition and may have access to fees paid directly to the school.

Can I use the 1098-T to claim expenses for a course that is not part of a degree?

It depends on the credit. The American Opportunity Credit requires enrollment in a degree program. The Lifetime Learning Credit covers courses that are part of a degree or certificate program, or courses to improve job skills — even if they are not part of a formal program. Check the school's description of the course and the IRS rules for the credit you plan to claim.

What if the 1098-T shows a scholarship but I did not receive one?

Contact the school when ready. Box 2 on the 1098-T should show only scholarships or grants the school actually paid to you or applied to your bill. If the amount is wrong, ask for a corrected form. Scholarships reduce the may have access to expenses you can claim for a credit, so an inflated scholarship amount will lower your credit.