Step by Step Guide to Filing Form 1098-T for Tax Time
A Form 1098-T can feel confusing because it looks like a tax form you need to “file,” but most taxpayers do not send the form itself to the IRS. You use the information on it to claim education tax benefits, if you qualify.
The key is knowing what the form reports, who can use it, and how to enter the numbers correctly on your tax return. This guide walks through the process step by step, with plain-English explanations of the boxes, common mistakes, and what to do if the numbers do not match your records.
This article is for general information only and is not tax advice. If your situation is complex, ask a qualified tax professional or contact the IRS.
What Form 1098-T is used for
Form 1098-T, Tuition Statement, is issued by an eligible educational institution. Colleges, universities, and some vocational schools use it to report certain amounts related to tuition, fees, scholarships, and grants.
You may receive a 1098-T if you paid qualified education expenses during the year or if scholarships or grants were applied to your account.
The form can help you claim education-related tax benefits, mainly:
American Opportunity Tax Credit
Lifetime Learning Credit
Tuition-related adjustments when prior-year amounts changed
The school also sends a copy of the form to the IRS. That means the IRS may compare what appears on your tax return with what the school reported.
Still, the 1098-T is not always the final answer. It is a starting point. You should compare it with your own payment records, student account statements, receipts, and scholarship information.
Step 1. Find your Form 1098-T
Most schools make Form 1098-T available through the student portal. Some also mail a paper copy.
Schools generally must provide the form by January 31 if they are required to issue one. If you do not see it, check:
Your student tax forms section
Your billing or payment portal
Your school email
Any third-party service your school uses for tax forms
If you still cannot find it, contact the bursar, student accounts, or financial services office.
Do not wait until the last minute. If the form has an error, you may need time to request a corrected version.
Step 2. Confirm whose tax return should use the form
Before entering anything, decide who can claim the education benefit.
This usually depends on dependency status.
If the student is claimed as a dependent, the parent or guardian usually claims the eligible education credit on their tax return. The student does not claim it separately.
If the student is not claimed as a dependent, the student may be able to claim the credit on their own return.
A few basic rules help:
If someone can claim the student as a dependent, the student generally cannot claim the education credit.
If the parent claims the student, the parent usually uses the 1098-T information.
If no one claims the student, the student may use it if they otherwise qualify.
This matters because entering the form on the wrong return can cause delays, notices, or lost tax benefits.
Step 3. Review the student and school information
Start with the identification details at the top of Form 1098-T.
Check that these items are correct:
Student name
Student Social Security number or taxpayer identification number
School name
School address
School taxpayer identification number
Account number, if listed
If the student’s Social Security number is wrong, contact the school right away. A mismatch can create IRS processing issues.
If the address is outdated but the taxpayer identification information is correct, that usually matters less. Still, update your records with the school so future forms arrive properly.
Step 4. Understand Box 1 for payments received
Box 1 shows payments received by the school for qualified tuition and related expenses during the calendar year.
This box is often the most important number on the form.
Qualified tuition and related expenses generally include tuition and required fees needed for enrollment or attendance. They do not usually include room and board, transportation, insurance, medical expenses, or optional personal costs.
For example, if a school charged tuition in December but you paid it in January, the year of payment can matter. Education credits are generally based on amounts paid during the tax year, not just amounts billed.
That is why your student account statement matters. Box 1 may not include every cost you think of as a school expense.
Step 5. Review scholarships and grants in Box 5
Box 5 shows scholarships and grants administered and processed by the school.
This amount is important because tax-free scholarships and grants can reduce the qualified education expenses you can use for a credit.
For example, say Box 1 shows $10,000 in qualified tuition payments and Box 5 shows $6,000 in scholarships. You may only have $4,000 of expenses left to consider for an education credit, assuming the scholarship was tax-free and applied to qualified expenses.
Some scholarships may be taxable if they cover nonqualified costs, such as room and board. That does not automatically mean the full Box 5 amount is tax-free. You need to look at how the funds were used.
Keep records showing:
Scholarship award letters
Student account activity
Payments made by you or your family
Any refunds issued to the student
How scholarship funds were applied
These records help you support the credit if the IRS asks questions later.
Step 6. Check the other boxes before you enter the form
The smaller checkboxes and adjustment boxes can change how you report education costs.
Box 4 shows prior-year adjustments
Box 4 reports adjustments made during the year to qualified tuition and related expenses reported in a prior year.
This may happen if the school reduced previously reported tuition or corrected an earlier amount.
If you claimed an education credit in that earlier year, you may need to review whether the adjustment affects that return. In some cases, it can lead to additional tax.
Box 6 shows scholarship or grant adjustments
Box 6 reports adjustments to scholarships or grants reported in a prior year.
Like Box 4, this can affect a prior-year tax position. If the amount is significant, review the earlier return or ask a tax professional.
Box 7 means the amount may include next year’s academic period
Box 7 is checked if Box 1 includes payments for an academic period that begins in the first three months of the next year.
For example, you might pay spring semester tuition in December. The school includes the payment on the current year’s 1098-T because you paid it during that calendar year.
This can be valid for education credits, but you should keep records showing the payment date and academic period.
Box 8 means at least half-time student
Box 8 is checked if the student was at least half-time for at least one academic period during the year.
This box matters most for the American Opportunity Tax Credit, which generally requires at least half-time enrollment for at least one academic period.
Box 9 means graduate student
Box 9 is checked if the student was enrolled in a graduate-level program.
Graduate students usually do not qualify for the American Opportunity Tax Credit, but they may qualify for the Lifetime Learning Credit if other rules are met.
Box 10 relates to insurance reimbursements
Box 10 reports reimbursements or refunds under certain tuition insurance arrangements. Many students will see this box blank.
If it contains an amount, review it carefully because it may reduce eligible expenses.
Step 7. Gather records before preparing your tax return
Do not rely only on Form 1098-T. The IRS expects you to claim the correct amount, even if the form is incomplete or does not show every detail.
Gather these documents before filing:
Form 1098-T
Student account statement for the full calendar year
Receipts for tuition and required fees
Scholarship and grant letters
Records of student loan payments used for tuition
Receipts for required course materials, if relevant to the credit
Records of 529 plan distributions, if any
Employer education assistance records, if any
Student loans count as payments when the loan funds pay qualified expenses. You do not need to wait until you repay the loan to treat those amounts as paid.
Step 8. Choose the education tax benefit that fits
Most taxpayers using a 1098-T are looking at one of two credits.
Credit | Common use | Key point |
American Opportunity Tax Credit | First four years of postsecondary education | Usually more valuable, but has stricter rules |
Lifetime Learning Credit | Undergraduate, graduate, and job-skill courses | More flexible, but often smaller |
You generally cannot use the same expenses for both credits. You also cannot use the same expenses for multiple tax benefits.
That means no double dipping. If you use tuition expenses to support a tax-free 529 plan distribution, you cannot use those exact same expenses again for an education credit.
The best choice depends on the student’s status, year in school, income limits, expenses paid, and whether scholarships covered part of the cost.
Step 9. Enter the information in your tax software
Most tax software has an education section. It may ask if you received Form 1098-T.
Enter the form carefully:
Select the student.
Enter the school’s name and identification number.
Enter Box 1 exactly as shown.
Enter Box 5 exactly as shown.
Check any boxes that are checked on your form.
Add other qualified expenses only if the software asks and the expenses qualify.
Answer questions about scholarships, refunds, and dependency status.
This is the point where filing Form 1098-T for Tax Time usually becomes less about copying boxes and more about answering follow-up questions correctly.
If you prepare a paper return, education credits are generally calculated on IRS Form 8863, Education Credits. The final credit then flows to your Form 1040.
Most taxpayers do not attach Form 1098-T to a paper return unless the instructions specifically require it. Keep it with your tax records.
Step 10. Compare the result before filing
Before submitting your return, pause and review the education section.
Check these items:
The correct person claimed the student.
The student’s name and Social Security number match official records.
Box 1 and Box 5 were entered correctly.
Scholarships were not accidentally treated twice.
Room and board were not included as qualified tuition for the credit.
529 funds and education credits did not use the same expenses.
The software selected the credit you intended to claim.
If the refund or tax due changes in a surprising way, review the answers in the education section. A single checkbox can change the credit.
What to do if your 1098-T looks wrong
Sometimes the form does not match your records. That does not always mean the form is wrong.
Common reasons include:
A payment was made in a different calendar year.
Scholarships posted after tuition was billed.
A refund reduced the net amount paid.
Spring tuition was paid in December.
The school reported payments received, not all charges billed.
Nonqualified costs were included in your student balance but not Box 1.
If you find a real error, contact the school and ask whether it will issue a corrected 1098-T.
If the school does not correct it before the filing deadline, use your records to report the correct tax amount. Keep clear documentation in case the IRS asks for support.
Common mistakes to avoid
The biggest mistakes with Form 1098-T come from treating it as a complete tax calculation. It is not.
Avoid these errors:
Claiming the credit on the student’s return when a parent claimed the student as a dependent
Using the full Box 1 amount without subtracting tax-free scholarships
Claiming room and board as qualified tuition for an education credit
Forgetting required fees or course materials that may qualify
Using the same expenses for a 529 plan and an education credit
Ignoring Box 4 or Box 6 adjustments
Filing without checking whether the student was at least half-time
Assuming no 1098-T means no education credit
That last point matters. Some schools may not issue a 1098-T in certain situations. You may still be able to claim a credit if you qualify and have reliable records, but you should proceed carefully.
How long to keep Form 1098-T
Keep Form 1098-T with your tax records. A safe rule is to keep tax documents for at least three years after filing, and longer if your situation involves carryovers, amended returns, or complex education funding.
Store these records together:
Filed tax return
Form 1098-T
Form 8863, if used
Student account statements
Payment confirmations
Scholarship records
529 plan records
If the IRS sends a notice, organized records make the response much easier.
The simplest way to get it right
Form 1098-T is not meant to be mysterious. It reports school-related amounts, but your job is to connect those numbers to the tax rules.
Start with the form. Match it to your records. Confirm who can claim the student. Subtract tax-free scholarships from eligible expenses. Then use tax software or Form 8863 to claim the credit that fits.
If the numbers do not make sense, slow down before filing. A careful review now can prevent IRS notices later and help you claim the education benefit you are actually entitled to receive.
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