The 1098-T is a record of what you paid for college tuition and related education costs
The 1098-T is a tax form that reports money you spent on may have access to education expenses during the tax year. Schools send it to you and to the IRS. It exists so you can claim education-related tax credits on your federal return — credits that reduce the tax you owe, rather than just deducting an expense.
You receive a 1098-T if you paid tuition, fees, or course materials at an accredited college, university, or vocational school. The form covers expenses for you, your spouse, or a dependent you claim on your return. Room and board, books bought off-campus, and transportation do not appear on the form, even if the school required them.
The 1098-T arrives by January 31 of the year after you paid the expenses. If you paid in December 2024, you will receive the form by January 31, 2025, and use it on your 2024 tax return filed in 2025.
Key Takeaways
- The 1098-T reports tuition and fees you paid to a school, and you use it to claim education tax credits that lower what you owe.
- Schools send the form to you and the IRS by January 31 each year; you do not request it.
- The form shows what you paid, but you decide which education credit to claim based on your income and other factors.
- You can claim a credit even if the school did not send you a 1098-T, as long as you have proof of payment.
- Some expenses that count toward credits do not appear on the form, so you may need to add them yourself when you file.
What appears on the 1098-T and what does not
Box 1 on the form shows may have access to tuition and fees the school received from you or on your behalf. This includes tuition, mandatory fees, and course materials the school charged directly to your account. If you paid $8,000 in tuition and $400 in required fees, Box 1 will show $8,400.
Box 2 shows scholarships or grants the school paid out during the same period. This matters because you cannot claim a credit on money that was already covered by a scholarship. If you received a $5,000 scholarship and paid $8,000 out of pocket, only the $8,000 counts toward your credit.
The form does not include books, supplies, or equipment you bought yourself, even if the school required them. It does not include room, board, or transportation. If you paid $1,200 for textbooks at the campus bookstore, that amount does not appear on the 1098-T — but you may still be able to count it toward a credit if you have the receipt and meet other rules.
The two education credits and how the 1098-T connects to them
The American Opportunity Credit lets you claim up to $2,500 per student per year. It covers tuition, fees, and course materials. You can claim it for four years of undergraduate study. The Lifetime Learning Credit lets you claim up to $2,000 per return per year, covers the same expenses, and has no year limit — you can claim it for graduate school or part-time study.
You cannot claim both credits for the same student in the same year. You choose the one that saves you more money. The 1098-T shows the amount you paid, but the form itself does not tell you which credit to claim. That decision depends on your income, how many students you are supporting, and whether you have other education expenses the form does not list.
If you paid $6,000 in tuition and $800 in books you bought yourself, the 1098-T shows $6,000. But when you file, you can add the $800 in books if you have proof of purchase, and claim a credit on the full $6,800. The form is a starting point, not the final number.
When you receive the 1098-T and what to do if it does not arrive
Schools must send the 1098-T by January 31. If you paid tuition in the fall and winter of 2024, you will receive the form by January 31, 2025. Some schools send it by email, others by mail. Check your student portal or the email address you registered with the school.
If you do not receive the form by early February, contact the school's financial aid or bursar office. They can resend it or confirm whether one was issued. If the school says no form was issued, ask why — sometimes it is because the school did not receive payment, or because you did not meet the threshold for reporting (schools do not always issue a 1098-T for very small amounts).
You do not need the physical form to claim a credit. If the school never sends one, you can file using your own records: tuition bills, receipts, bank statements, or loan documents showing what you paid. The IRS will cross-check your claim against what the school reported, so keep copies of everything.
How scholarships and grants affect the 1098-T
If you received a scholarship or grant, the school reports it in Box 2 of the 1098-T. This is important because scholarships reduce the amount you can claim a credit on. If you paid $10,000 in tuition and received a $6,000 scholarship, you can only claim a credit on $4,000 — the part you paid yourself.
Some scholarships are restricted to tuition only, while others can cover room, board, or other expenses. The school decides what counts as a scholarship for 1098-T purposes. If you are unsure whether a payment counts as a scholarship or a loan, ask the financial aid office. Loans do not reduce your credit amount; only scholarships and grants do.
Using the 1098-T when you file your return
When you file your federal tax return, you will enter information from the 1098-T into the education credits section. Most tax software asks you to enter the amount from Box 1, then subtracts any scholarships from Box 2 automatically. You then choose which credit to claim.
If you paid expenses the form does not cover — such as books you bought separately or equipment required for your program — you add those amounts yourself. Keep receipts and invoices in case the IRS asks. The software or your tax preparer will calculate which credit saves you the most money and explore it to your return.
If you are claimed as a dependent on someone else's return, you cannot claim the education credit yourself. Your parent or guardian claims it instead. The 1098-T can be used by whoever paid the expenses, not necessarily the student.
What happens if the 1098-T amount does not match what you paid
Sometimes the form shows less than you actually paid. This can happen if you made a payment after the school's reporting important date, or if the school applied a payment to a different term than you expected. Contact the school and ask them to issue a corrected form (called a corrected 1098-T) if the error is on their end.
If you paid more than the form shows, gather your own documentation: bank statements, credit card receipts, or tuition bills. You can claim a credit on the higher amount if you can prove it. The school's 1098-T is not the only evidence the IRS accepts.
If the form shows more than you paid — for example, because the school applied a scholarship after sending the form — do not ignore it. Report the correct amount you actually paid, and keep documentation showing the difference. The IRS will match the school's report to your return, and if there is a discrepancy, you want to be able to explain it.
Frequently Asked Questions
Do I have to use the 1098-T to claim an education credit?
No. The form is a record of what the school reported, but you can claim a credit based on your own records if the form is missing, incorrect, or incomplete. Keep receipts, bills, and bank statements as proof of what you paid.
Can I claim a credit if I did not receive a 1098-T?
Yes. If the school did not send the form or you paid at a school that does not issue one, you can still claim a credit. You will need documentation of your payment: a tuition bill, receipt, or bank record showing the amount and date.
What if I paid tuition with a student loan?
The 1098-T still applies. You claim the credit based on the tuition amount, not the loan amount. The loan itself does not reduce your credit. However, you may also be able to deduct student loan interest separately on your return.
Can both my parent and I claim the education credit for the same expenses?
No. Only one person can claim the credit per student per year. If your parent claims you as a dependent, they claim the credit. If you are independent, you claim it. Decide together who benefits more and file accordingly.
Does the 1098-T include room and board?
No. Room and board do not appear on the form and do not count toward education credits. Only tuition, fees, and course materials the school charged directly count. Books and supplies you bought separately may count, but you have to add them yourself with proof of purchase.