The 1098-T reports education expenses you paid during the year
The Form 1098-T is a tax document that shows may have access to education expenses paid by you or your family members during the tax year. Schools and universities send this form to students and parents who paid tuition, fees, or other may be able to access costs. The IRS uses the information on this form to determine whether you can claim education tax credits on your return.
You will receive a 1098-T only if your school has your tax identification number (your Social Security number or Individual Taxpayer Identification Number) on file and you paid may have access to expenses. Not every student gets one — some schools do not issue them, and some students do not meet the threshold for reporting. Even if you do not receive a 1098-T, you may still be able to claim education credits if you have records of what you paid.
The form itself does not reduce your taxes. Instead, it provides the documentation you need to claim the American Opportunity Tax Credit or the Lifetime Learning Credit, both of which can lower your tax bill or increase your refund.
Key Takeaways
- Form 1098-T reports may have access to education expenses and is issued by schools to students or parents who paid tuition and fees.
- The expenses listed on the form may may have access to you for the American Opportunity Tax Credit (up to $2,500 per student) or the Lifetime Learning Credit (up to $2,000 per return).
- You do not need to receive a 1098-T to claim education credits — you can use your own records of what you paid if the school did not issue one.
- The form reports expenses paid during the calendar year, not the academic term, so timing matters when expenses fall between tax years.
What expenses appear on the 1098-T
The 1098-T lists two main categories of expenses: may have access to tuition and fees in Box 1, and scholarships or grants received in Box 5. may have access to tuition and fees include what you paid to the school for enrollment or attendance — tuition itself, required fees, and course materials if the school requires you to buy them directly from the institution. Room and board, transportation, and personal expenses do not count, even if you paid them while in school.
Box 5 shows scholarships, grants, or other educational information the school paid on your behalf. This matters because scholarships reduce the amount of expenses you can use to claim a credit. If you received a $5,000 scholarship and paid $8,000 in tuition, only $3,000 of your own money counts toward the credit calculation.
The form reports expenses paid during the calendar year (January through December), not the academic term. If you paid spring semester tuition in December for a January class, it counts in the year you paid it, not the year you took the class. This timing issue often catches students and parents off guard when expenses straddle two tax years.
Who issues the 1098-T and when you receive it
Accredited colleges, universities, and may be able to access educational institutions issue Form 1098-T. The school must have your tax identification number on file — usually your Social Security number. If the school does not have your number, they cannot issue the form, even if you paid may have access to expenses.
Schools send the 1098-T by January 31 of the year following the tax year. For example, expenses you paid in 2024 appear on a 1098-T mailed in January 2025. The IRS also receives a copy, so the form becomes part of your tax record.
Some schools do not issue 1098-Ts at all, particularly smaller institutions, trade schools, or programs that do not meet IRS criteria for may be able to access educational institutions. If your school did not send you one, contact the financial aid or bursar office to ask whether they issue the form. If they do not, you will need to gather your own documentation — receipts, tuition bills, or statements from the school showing what you paid.
How the 1098-T connects to education credits
The 1098-T provides the starting point for calculating education credits, but the form itself does not determine which credit you claim or how much you receive. You decide which credit works best for your situation when you file your return.
The American Opportunity Tax Credit allows up to $2,500 per student per year for the first four years of undergraduate study. It covers tuition, fees, and course materials. The Lifetime Learning Credit allows up to $2,000 per return (not per student) and covers tuition and fees for any level of education, including graduate school and professional development courses.
You cannot claim both credits for the same student in the same year, so you will need to do the math to see which one saves you more money. The American Opportunity credit is usually larger if the student qualifies, but the Lifetime Learning Credit has no limit on how many years you can claim it. Your tax software or a tax professional can help you compare.
What to do if the 1098-T amount seems wrong
If the expenses listed on your 1098-T do not match what you paid, contact the school's financial aid or bursar office first. Schools sometimes report scholarships incorrectly, omit expenses paid in a different way, or include non-may have access to costs by mistake. Ask for a corrected form if there is an error.
If the school confirms the amount is correct but you believe it is wrong, keep your own records — receipts, tuition bills, and payment confirmations. You can file your return using your own records instead of the 1098-T amount. The IRS may ask you to prove what you paid, so documentation matters.
If you paid expenses but the school did not issue a 1098-T because they did not have your tax ID, you can still claim the credit. Gather your payment records and report the expenses on your return. You will not have a matching 1098-T, but that does not disqualify you from the credit if you can document what you paid.
1098-T and dependent students versus independent filers
Who claims the education credit depends on who paid the expenses and your filing status. If your parents paid your tuition and you are their dependent, they typically claim the credit on their return, not yours. The 1098-T may be issued in your name, but your parents use the information to claim the credit.
If you paid the expenses yourself, you claim the credit on your own return. If you and your parents split the cost, only the person who actually paid can claim that portion of the credit. The form does not show who paid — you have to track that yourself.
If you are married and file jointly, you and your spouse can combine your education expenses on one return, but you still cannot claim both the American Opportunity and Lifetime Learning credits for the same student in the same year.
When you do not receive a 1098-T but paid education expenses
Not receiving a 1098-T does not mean you cannot claim an education credit. You can report may have access to education expenses on your return using your own records if the school did not issue the form. Gather receipts, tuition statements, payment confirmations, or any documentation showing what you paid and when.
Keep these records for at least three years in case the IRS asks you to verify the expenses. If you claim a credit without a matching 1098-T, the IRS may contact you to confirm the amount, so having documentation ready protects you.
Some students pay expenses through payment plans, loans, or third-party services rather than directly to the school. These payments still count as may have access to expenses if they went toward tuition or fees. The key is showing what you paid and that it was for may be able to access education costs.
Frequently Asked Questions
Does the 1098-T reduce my taxes automatically?
No. The 1098-T is a reporting document only. You must claim an education credit on your tax return to reduce your taxes. The form provides the information you need, but you decide whether to claim the American Opportunity Credit, the Lifetime Learning Credit, or neither.
What if my parents paid my tuition but the 1098-T is in my name?
Your parents claim the credit on their return if you are their dependent and they paid the expenses. The form may be issued in your name because the school had your Social Security number, but your parents use the information to claim the credit. If you are not their dependent, you claim it.
Can I claim a credit for expenses my scholarship did not cover?
Yes, but only for the amount you paid out of your own pocket. If your scholarship covered $5,000 of an $8,000 bill, you can claim a credit based on the $3,000 you paid. The 1098-T shows both the total expenses and the scholarship amount, so you can calculate your own contribution.
What if I paid tuition in December for a January class?
The credit applies to the year you paid, not the year you took the class. If you paid in December 2024 for a January 2025 class, the expense counts on your 2024 return. This timing can affect which year you claim the larger credit.
Do I need the 1098-T to claim an education credit?
No. If your school did not issue a 1098-T, you can still claim a credit using your own records of what you paid. Keep receipts and payment confirmations to support your claim if the IRS asks.