The 1098-T reports education costs you paid during the year

The 1098-T is a tax form that shows how much you or someone you claimed as a dependent paid for may have access to education expenses in a given tax year. Schools send it to you and to the IRS. The form exists so you can report those costs when you file your taxes and potentially reduce the amount of tax you owe through education tax credits.

You receive a 1098-T from the school itself — not from the IRS. The school is required to send it to you by January 31 if you paid tuition, fees, or other may have access to expenses during the year. The form covers only the calendar year it lists; if you paid expenses in December for a January course, those expenses appear on the following year's form.

The 1098-T does not mean you automatically get money back or owe less tax. It is straightforward a record of what you paid. Whether you can use those expenses to reduce your tax bill depends on which education credits you may have access to for, your income level, and whether you meet other requirements set by the IRS.

Key Takeaways

  • Schools send the 1098-T to report tuition, fees, and other may have access to education expenses you paid during the tax year.
  • The form covers only expenses paid in the calendar year listed — not expenses paid for future semesters.
  • You can use the 1098-T to report education expenses when you file taxes, but receiving the form does not automatically reduce your tax bill.
  • The American Opportunity Credit and Lifetime Learning Credit are the two main education credits that use 1098-T information.
  • If you paid education expenses but did not receive a 1098-T, you can still report those costs if you have receipts or other proof.

What expenses appear on the 1098-T

The 1098-T lists may have access to tuition and fees you paid to an may be able to access school. This includes tuition itself, required course fees, and required books or supplies if the school bundles them into the bill. Room and board, transportation, and personal expenses do not appear on the form, even if you paid them while in school.

The form shows expenses paid during the calendar year, regardless of when the course took place. If you paid tuition in December for a January course, that amount goes on the current year's 1098-T. If you paid in January for a course that started in December of the previous year, it appears on the previous year's form.

Scholarships and grants reduce the amount shown on the 1098-T. If you received a scholarship that covered part of your tuition, the school subtracts that amount before reporting the net cost to you. This matters because you cannot claim a tax credit on expenses that were already covered by tax-free aid.

The two main education tax credits that use 1098-T information

The American Opportunity Credit allows you to claim up to $2,500 per student per year for the first four years of undergraduate study. You must have paid may have access to education expenses, and the student must be enrolled at least half-time in a degree program. This credit can result in a refund to you even if you owe no tax.

The Lifetime Learning Credit allows you to claim up to $2,000 per tax return per year for any level of education — undergraduate, graduate, or professional courses. You do not have to be enrolled full-time, and there is no limit on how many years you can claim it. However, this credit does not result in a refund; it only reduces 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. Your income level also affects whether you can claim either credit; the IRS phases out both credits at higher income thresholds, which change each year.

Who receives a 1098-T and when

Any school that is may be able to access to participate in federal student aid programs must send a 1098-T if you paid may have access to education expenses during the year. This includes most colleges, universities, and vocational schools. The school sends the form to you and files a copy with the IRS.

Schools mail the 1098-T by January 31 of the year following the tax year in question. If you do not receive one by early February, contact the school's financial aid or accounting office to ask whether they sent it and to request a copy. Some schools also make the form available through your student portal.

If you paid education expenses but the school did not send you a 1098-T, you can still report those expenses on your tax return. You will need to provide documentation — receipts, invoices, or a statement from the school showing what you paid. The IRS does not require you to attach the 1098-T to your return, though you should keep it with your records.

How to read the 1098-T form

The 1098-T has several boxes, but most filers only need to pay attention to a few. Box 1 shows may have access to tuition and fees you paid. Box 2 shows scholarships or grants the school reported to the IRS. Box 5 shows whether the student was enrolled at least half-time, which matters for the American Opportunity Credit.

The form lists the student's name and Social Security number, the school's name and address, and the tax year it covers. Make sure the student's information is correct; if there is an error, contact the school to request a corrected form.

You do not need to submit the 1098-T with your tax return. However, you should keep it with your tax records in case the IRS asks questions about the education credits you claimed. If you file electronically, your tax software will ask you to enter the information from the form, and you keep the physical copy at home.

What to do if you paid education expenses but received no 1098-T

If you paid tuition or fees directly to a school but did not receive a 1098-T, start by contacting the school's financial aid office. They may have sent it to an old address, or there may have been a processing error. Ask them to send you a copy or to verify that they filed it with the IRS.

If the school confirms they did not send a 1098-T because you did not meet their threshold for reporting (some schools only send forms for expenses above a certain amount), you can still claim the education credit. Gather your receipts, invoices, or a statement from the school showing what you paid, and report that amount on your tax return.

If you paid expenses to a school that does not participate in federal student aid programs, that school would not send a 1098-T at all. In that case, you cannot claim the American Opportunity or Lifetime Learning credits, because those credits are only for expenses at may be able to access schools. You can check whether a school is may be able to access by searching the Federal Student Aid website.

Income limits and other rules that affect the 1098-T

Your income determines whether you can claim either education credit. The American Opportunity Credit phases out for single filers with income above $80,000 and joint filers above $160,000 (these amounts change yearly). The Lifetime Learning Credit phases out at $70,000 for single filers and $140,000 for joint filers.

If your income is above these thresholds, you may not be able to claim a credit even if you have a 1098-T. Some people in this situation transfer the credit to a dependent student who files their own return, though this has its own rules and limits.

You also cannot claim a credit if the expenses were paid with tax-information programs — such as a scholarship, grant, or funds from a 529 plan that was used tax-free. If part of your expenses came from tax-free aid and part from your own money, you can only claim a credit on the portion you paid yourself.

Frequently Asked Questions

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

No. Receiving a 1098-T does not require you to claim a credit. Some people choose not to claim it because their income is too high, because they did not pay enough in expenses to benefit from the credit, or because they want to use the expenses for a different tax purpose. You decide whether claiming the credit is to your advantage.

Can I use the 1098-T if I paid expenses with student loans?

Yes. The 1098-T reports expenses you paid, regardless of how you paid them. If you borrowed money to cover tuition, you can still claim the education credit based on the amount shown on the form. However, you cannot claim both the credit and the student loan interest deduction for the same expenses.

What if the 1098-T shows an amount that is wrong?

Contact the school when ready and ask them to issue a corrected form. The school will send you a corrected 1098-T and file a corrected version with the IRS. Do not file your tax return until you have the correct form, because the IRS will have the same information the school filed.

Can I claim an education credit without a 1098-T?

Yes, if you have documentation of what you paid. Keep receipts, invoices, or a statement from the school. Report the amount on your tax return and keep your records in case the IRS asks for proof. The 1098-T is convenient but not required if you can show what you paid another way.

Does the 1098-T cover expenses for graduate school?

Yes, the 1098-T covers graduate tuition and fees the same way it covers undergraduate expenses. However, only the Lifetime Learning Credit applies to graduate study; the American Opportunity Credit is limited to the first four years of undergraduate study.