Form 1098-T: What Students Need to Know

If you’re a student or parent paying tuition, you’ve probably received Form 1098-T around January. It may look simple, but it’s your key to unlocking education tax credits — and possibly a bigger refund.

In plain English, the student tax form 1098-T reports tuition payments and scholarships so you can claim valuable education credits like the American Opportunity Tax Credit (AOTC) or Lifetime Learning Credit (LLC). It also helps determine whether any scholarships or grants you received are taxable.

Understanding your 1098-T helps you claim education credits correctly and avoid IRS mistakes during filing.

What Is Form 1098-T?

Before you can claim any education credits, it’s essential to understand what the 1098-T actually reports.

Form 1098-T (Tuition Statement) is issued by eligible educational institutions by January 31 each year. It reports qualified tuition and related expenses (QTRE), scholarships, and grants paid or received during the calendar year to both the student and the IRS.

It’s your school’s official record of what you paid in qualified tuition and related expenses and what you received in scholarships and grants. This information helps you (or your parents) determine whether you can claim educational tax credits like the AOTC or LLC. The decision on who claims the AOTC depends on the student's dependency status and who pays for the education expenses.

Most students receive it electronically through their school portal, unless they’ve opted for paper mail.

Source: IRS Form 1098-T Instructions

What the 1098-T Reports

Each 1098-T breaks down key details about your academic payments and aid:

• Qualified tuition and related expenses (QTRE): The total tuition and mandatory fees paid during the same calendar year.
• Scholarships and grants: Any funds from federal, state, or private programs that paid your tuition.
• Adjustments: Corrections to prior-year data (like refunds or late scholarships).

You’ll typically receive a 1098-T if you were enrolled in a degree or certificate program and paid tuition during the tax year.

Pro Tip: Always compare your 1098-T with your school billing statement. If something looks off, such as missing payments or unlisted scholarships, contact your bursar’s office before you file your taxes.

When You May Not Receive a 1098-T

You may not receive a Form 1098-T in some situations, including:

• Your scholarships and grants fully covered qualified tuition and fees
• You only took non-credit or continuing education courses
• You attended a foreign school that does not meet IRS reporting requirements
• Your school is not required to issue the form

Even if you do not receive a 1098-T, you may still need to report taxable scholarship income or review whether any education tax benefits apply.

How the 1098-T Impacts Your Taxes

Form 1098-T provides the information needed to determine eligibility for the American Opportunity Tax Credit (AOTC) or Lifetime Learning Credit (LLC), but receiving the form itself doesn’t automatically qualify you for a credit.

• American Opportunity Tax Credit (AOTC) — for undergraduate students
• Lifetime Learning Credit (LLC) — for graduate or continuing education students

Both credits can reduce your federal tax bill, and in some cases, they can also give you a refund.

If you’re still claimed as a dependent, your parents can use your 1098-T to claim the credits. If you’re filing independently, you’ll use it yourself.

Source: IRS Pub. 970, Chapters 2 and 3

Form 1098-T is one of several tax documents students may receive.

See the Student Tax Forms guide to understand how all student tax documents fit together.

How to Read Your 1098-T (Box-by-Box)

Every 1098-T includes nine boxes that summarize your tuition and aid details. Here’s what each one means:

Understanding how to read Form 1098-T helps you correctly claim credits and avoid reporting mistakes.

Pro Tip: Box 5 trips up more students than any other. If your total scholarships and grants exceed your qualified tuition and related expenses, the excess is generally taxable and must be reported as income.

Source: IRS Pub. 970, Chapter 1

Qualified Tuition and Related Expenses (QTRE): What Counts for Tax Credits

Not every college cost qualifies for a tax break. The IRS defines Qualified Tuition and Related Expenses (QTRE) as those required for enrollment or attendance.

Only qualified tuition and related expenses count toward education credits. Even if you paid for extras like housing or meal plans, they won’t appear on your tuition statement or count for credits.

Always review which costs your school classifies as “qualified,” since not all course materials or fees are treated the same across institutions.

Claiming Education Credits with Your 1098-T

Your Form 1098-T helps determine whether you may qualify for education tax credits, such as the American Opportunity Tax Credit or Lifetime Learning Credit. The form reports tuition payments and scholarships that may affect your eligibility. See the Education Credits comparison guide for full eligibility rules and credit details.

Scholarships on 1098-T — Are They Taxable?

Box 5 shows scholarships and grants reported by your school. If your scholarships and grants are more than your qualified tuition and related expenses (QTRE), the excess may be taxable and may need to be reported as income. Keep your 1098-T and school billing records for reference when filing. See Are Scholarships Taxable for full income treatment rules.

Sources:

• IRS Pub. 970, Chapter 1
• Form 1040 Instructions

Getting and Correcting Your 1098-T

You’ll usually get your 1098-T around January 31:

1. Opt into electronic delivery — You’ll get an email when it’s ready.
2. Check your postal mail — If you didn’t consent to e-delivery, your school will send a paper copy.
3. Missing form? — Log in to your student portal or contact your bursar’s office.

Fixing Errors

If your 1098-T looks off — like missing tuition, incorrect scholarships, or a wrong Social Security Number — request a correction immediately.
If corrections are needed, your school will issue a Corrected Form 1098-T and send it to both you and the IRS. Most schools list detailed 1098-T FAQs in their student billing or financial aid portal.

Never guess or “edit” numbers yourself. Mismatches between your return and the school’s data can slow down refunds or trigger IRS notices.

Common Mistakes to Avoid

Even experienced students and parents make the following Form 1098-T filing mistakes:

1. Claiming non-qualified expenses — Only tuition, required fees, and course materials count.
2. Ignoring scholarship overages — Excess amounts might be taxable.
3. Double-claiming education credits — Only one person (you or your parent) can claim the same student.
4. Forgetting prior-year adjustments — Boxes 4 and 6 can affect old credits.

When in doubt, verify every box with your school’s financial office or contact your loan servicer for clarification.

Avoiding these errors can help you claim your full education benefits and prevent IRS issues.

Related Resources & Tools

• AOTC vs LLC Comparison Chart
• Are Scholarships Taxable?
• IRS Form 1098-T Instructions
• Tax Forms Every Student Should Know
• IRS Pub 970

The Bottom Line

Form 1098-T helps students and families review tuition payments, scholarships, and potential education tax benefits. Understanding what the form reports can help you file accurately, avoid reporting mistakes, and keep complete tax records. If you have questions about credit eligibility, taxable scholarships, or corrections, review the related student tax guides before filing.

Learn more about how starting school affects your taxes in our Student Taxes Guide.