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

The 1098-T 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 — but not room, board, or transportation. The form arrives in January or February for the previous tax year and shows what you spent out of pocket, not what financial aid covered.

You receive a 1098-T if you paid at least $1 for may have access to education expenses during the tax year. Your school decides whether to send one based on what you actually paid, not what you owe. If you received a scholarship or grant that covered your expenses, the school may not send a 1098-T, or it may show a lower amount.

The form itself has two main parts: one section shows the expenses the school reported, and another shows any scholarships or grants the school knows about. You use this information when you file your taxes to see if you can claim an education tax credit.

Key Takeaways

  • The 1098-T reports may have access to education expenses like tuition and required fees that you paid during the tax year.
  • Your school sends the form to you and the IRS if you paid at least $1 in may be able to access costs, usually by early February.
  • The form shows what you paid out of pocket, and scholarships or grants your school knows about are listed separately.
  • You use the 1098-T information to determine whether you can claim the American Opportunity Tax Credit or Lifetime Learning Credit on your tax return.

What expenses show up on the 1098-T

The 1098-T includes tuition and required fees that you paid to the school during the calendar year. Required fees are charges the school mandates as a condition of enrollment — things like lab fees, technology fees, or student activity fees. The form does not include optional fees, parking permits, or health insurance.

Course materials appear on the form only if the school bundled them into the tuition charge or if you bought them directly from the school as part of your bill. If you bought textbooks at a bookstore or online, they do not show up on the 1098-T, even though they may still count as a may have access to expense when you file your taxes.

Room and board, transportation, personal expenses, and loan fees do not appear on the 1098-T. Neither do medical school or law school expenses, even though some of those may be deductible under different tax rules. The form is limited to undergraduate and graduate degree programs at accredited institutions.

Where to find your 1098-T and what the boxes mean

Your school mails the 1098-T to your address on file, usually by February 28. You should also receive a copy through your student portal or email. If you do not receive one by mid-March, contact your school's financial aid office — they can tell you whether one was sent and resend it if needed.

The form has several numbered boxes. Box 1 shows may have access to education expenses the school reported. Box 2 shows scholarships or grants the school knows about. Box 5 shows whether you are a graduate student. The other boxes cover less common situations, like expenses paid by a third party or adjustments the school made.

The amounts on the 1098-T may not match what you actually paid out of pocket. If you received a scholarship that covered part of your tuition, the school subtracts that from the expenses shown in Box 1. If you paid some expenses with a student loan, those still appear on the form because you paid them, even though you borrowed the money.

How the 1098-T connects to education tax credits

The 1098-T itself does not give you a tax credit. Instead, it provides the information you need to calculate whether you are may be able to access for one. The two main education credits are the American Opportunity Tax Credit and the Lifetime Learning Credit. You can claim only one credit per student per year.

The American Opportunity Tax Credit allows up to $2,500 per student per year if you meet income limits and other requirements. The Lifetime Learning Credit allows up to $2,000 per tax return (not per student) and has different income limits. Both credits require that you paid may have access to education expenses and that the student was enrolled at least half-time in a degree program.

When you file your taxes, you enter the information from your 1098-T into the appropriate credit form. Your tax software or tax preparer will use the amounts to calculate which credit saves you more money. The 1098-T is not required to claim a credit — you can claim one based on expenses you paid even if you do not receive a form — but having the form makes the process clearer.

What to do if the 1098-T amount looks wrong

If the expenses listed on your 1098-T do not match what you paid, contact your school's financial aid office first. Schools sometimes make mistakes when they report expenses, or they may have received updated scholarship information after sending the form. The school can issue a corrected form if there was an error.

Common reasons the amount might look low: you received a scholarship or grant that the school subtracted from the expenses, you paid some costs with a student loan (which counts as you paying them), or you paid expenses in a different year than you thought. If you paid tuition in December for a spring semester class, that expense counts in the year you paid it, not the year the class meets.

If you paid may have access to expenses that do not appear on the 1098-T — for example, textbooks you bought outside the school's system — you can still claim those expenses when you file your taxes. Keep your receipts. You do not need the 1098-T to claim expenses; the form is just a record the school provides to help you and the IRS track what was paid.

Who receives a 1098-T and who does not

You receive a 1098-T if you paid at least $1 in may have access to education expenses during the tax year and you were enrolled in an accredited degree program. The school decides whether to send one based on what it knows about your payments and scholarships.

You may not receive a 1098-T if your employer paid your tuition through a tuition reimbursement program, because you did not pay it yourself. You also may not receive one if you paid only with a student loan and no out-of-pocket money, though some schools still send the form in that case. If a scholarship or grant covered all your expenses, the school may not send a 1098-T, or it may send one showing $0 in Box 1.

International students, students in non-degree programs, and students at non-accredited schools do not receive a 1098-T. If you are unsure whether your school is accredited or whether you should have received a form, your financial aid office can tell you.

Keeping records and using the 1098-T at tax time

Keep your 1098-T with your tax records for at least three years. You do not have to send it with your tax return, but the IRS has a copy, and you may need to refer to it if your return is reviewed.

When you file your taxes, enter the information from your 1098-T into your tax software or give it to your tax preparer. They will use it to calculate your education credit and determine your tax liability. If you paid expenses that do not appear on the form, gather receipts for those as well — you can include them in your credit calculation even without a 1098-T.

If you did not receive a 1098-T but you paid may have access to education expenses, you can still claim a credit. Contact your school to ask whether a form was issued, and if not, gather your own records of what you paid. Your tax preparer or software can help you document the expenses.

Frequently Asked Questions

Can I claim a tax credit if I do not receive a 1098-T?

Yes. The 1098-T is a record the school provides, but you can claim an education credit based on may have access to expenses you paid, even without the form. Keep your own receipts and records of tuition bills, fee statements, and course material purchases. Your tax preparer can help you document what you paid.

Does the 1098-T show financial aid I received?

The form shows scholarships and grants that the school knows about, listed separately from your expenses. If you received aid from an outside source that the school does not know about, it will not appear on the 1098-T. You are responsible for tracking all aid you received when you calculate your education credit.

What if my school sent me a 1098-T but I did not pay anything out of pocket?

If a scholarship or grant covered all your expenses, you may not be able to claim an education credit, even if the form shows expenses. The credit requires that you paid may have access to expenses yourself. Review the amounts in Box 1 and Box 2 on your form to see what the school reported as your out-of-pocket cost.

Can I use the 1098-T for expenses from a previous year?

No. The 1098-T reports only expenses paid during that calendar year. If you paid tuition in December 2023 for a spring 2024 class, that expense counts on your 2023 tax return, not your 2024 return. The year you paid the expense is what matters, not the year the class meets.

What if I paid tuition with a student loan?

Student loan money still counts as you paying the expense, so it appears on your 1098-T. The fact that you borrowed the money does not change whether the expense is may have access to. However, you cannot claim both an education credit and a student loan interest deduction for the same expenses in the same year.