Form 1098-T, Tuition Statement, is the form a college or other eligible educational institution sends each student showing the qualified tuition and related expenses it received in the year, plus scholarships and grants it handled. You don't file it with your return, but the law generally requires you (or your dependent) to have received one to claim the American opportunity credit or the lifetime learning credit.
It's an information form, not a bill and not a calculation of your credit. The number in box 1 is a starting point, and the scholarships in box 5 can change your answer completely. Everything below comes from the IRS instructions for the form and Publication 970.
The boxes, explained
| Box | What it shows |
|---|---|
| 1 | Payments received for qualified tuition and related expenses from all sources in the year, less refunds. Not reduced by scholarships. |
| 4 | Adjustments made for a prior year (refunds or reduced charges relating to an earlier year) |
| 5 | Scholarships or grants the school administered and processed, such as a Pell Grant or VA and Defense Department payments |
| 6 | Reductions to scholarships or grants reported for a prior year |
| 7 | Checked if some of the payments relate to an academic period starting January to March of the next year |
| 8 | Checked if you were at least a half-time student in any academic period that began in the year |
| 9 | Checked if you were a graduate student |
| 10 | Reimbursements or refunds an insurer made to you (insurers only) |
Boxes 2 and 3 are reserved. Box 1 can include a payment of past-due tuition from an earlier year, but only if the school billed you for it.
Why box 7 matters
If you paid in December for a spring term that starts in January, February or March, box 7 is ticked. Pub. 970 gives the example: pay $2,000 in December 2025 for a term starting in 2026, and you can use that $2,000 in figuring a credit for 2025, as of October 2026.
Who doesn't get a 1098-T
Schools don't have to file one or send you a statement for:
- Courses that carry no academic credit, even if you're otherwise in a degree program.
- Nonresident alien students, unless the student asks for one.
- Students whose qualified expenses are entirely waived or paid entirely with scholarships.
- Students with no separate financial account whose costs are covered by a formal billing arrangement with an employer or a government body, such as the Department of Veterans Affairs or the Department of Defense.
Pub. 970 says you can still claim a credit when the school wasn't required to send the form for one of these reasons.
The two credits it unlocks
| American opportunity credit | Lifetime learning credit | |
|---|---|---|
| Maximum for 2025 | Up to $2,500 per eligible student | Up to $2,000 per return |
| MAGI limit | $180,000 joint; $90,000 single, head of household or qualifying surviving spouse | Same: $180,000 joint; $90,000 others |
| Refundable? | 40% may be refundable | Nonrefundable |
| Years available | 4 tax years per student, and only if the first 4 years of postsecondary education weren't done before 2025 | No limit on years; courses to improve job skills count |
| Enrollment | At least half-time for one academic period | No half-time rule |
Figures are as of October 2026. You can claim only one of the two credits for the same student in the same year. For the American opportunity credit, you need an SSN or ITIN issued by your return's due date, so if you're waiting on an ITIN, apply in time.
The scholarship choice that can raise your credit
This is the detail most families miss. Pub. 970 shows that choosing to treat part of a flexible scholarship as taxable income (as if it paid room and board) can free up tuition to count for the credit. In its example, Bill pays $5,600 of qualified expenses and gets a $5,600 scholarship that can be used for any costs. Excluding the whole scholarship leaves no credit and a tax bill of $2,585. Including $4,000 of it in income raises his tax before credits to $3,065, but lets him claim the full $2,500 credit, so he ends up owing $565 instead (figures as of October 2026). That works even when the college applies the scholarship straight to tuition.
Qualified expenses for the American opportunity credit include tuition, required enrollment fees and course materials the student needs, such as books, supplies and equipment, whether or not they're bought from the school. Room and board never count.
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Using your 1098-T, step by step
- Check your name, address and the last digits of your taxpayer number. Schools may show only part of it.
- Compare box 1 with your own records of what you paid, including amounts paid by parents or loans.
- Subtract tax-free scholarships and grants (box 5, and any others) from your qualified expenses.
- Check boxes 7, 8 and 9 for timing, half-time status and graduate status.
- Decide which credit fits, then claim it on your return with the school's details.
If you use a paid preparer to claim the American opportunity credit, they'll complete a due diligence checklist on Form 8867 and may ask to see your 1098-T and receipts.
Common mistakes
- Claiming box 1 in full when a scholarship paid part of it. Box 1 isn't reduced by box 5, so you have to do that step yourself.
- Double-counting a December payment for a spring term in both years.
- Claiming the American opportunity credit for a fifth year. It's capped at 4 tax years per student; the lifetime learning credit may still apply.
- Forgetting the form exists because the school only posted it online. Many schools deliver it electronically if you agreed to that.
The verdict
Treat your 1098-T as evidence, not an answer. Download it, check it against what was paid, take scholarships off, and then pick the better of the two credits. If you're paying for a spring term in December, that payment may count this year, so look for the box 7 tick before you file.
Frequently asked questions
Do I need Form 1098-T to claim an education credit?
Generally yes. The law requires you or your dependent to have received a 1098-T, unless the school wasn't required to send one.
Is box 1 on Form 1098-T what I can claim?
Not necessarily. Box 1 isn't reduced by scholarships in box 5, so you subtract tax-free scholarships and grants first.
Why didn't I get a 1098-T?
Schools don't have to send one for non-credit courses, nonresident aliens who don't ask, costs fully covered by scholarships, or some employer or government billing arrangements.
Do I attach Form 1098-T to my tax return?
No. You keep it with your records and use it to figure your education credit.
