You do not file a 1098-T form itself — you use the information on it to claim education tax credits on your Form 1040

The 1098-T is a record of may have access to education expenses paid during the tax year. Your school sends it to you and to the IRS. You then transfer the numbers from your 1098-T to either Form 8863 (Education Credits) or directly to your Form 1040, depending on which credit you claim and which tax software you use. The form itself does not get filed with the IRS — only the credit amount you calculated from it goes on your return.

This matters because many people think they need to attach the 1098-T to their return or file it separately. You do not. You keep it with your records in case the IRS asks questions later. The actual filing step is entering the education credit on your main tax return.

Key Takeaways

  • Your school reports may have access to education expenses on the 1098-T, but you decide which education credit (American Opportunity or Lifetime Learning) to claim based on your situation.
  • You report the credit amount on Form 8863 or directly on Form 1040, depending on your tax software and income level.
  • The 1098-T itself stays in your records — it does not attach to your filed return.
  • If the 1098-T shows expenses you did not actually pay, or if you paid expenses the school did not report, you may need to adjust the numbers before claiming the credit.
  • You can only claim one education credit per student per year, so you must choose between the American Opportunity Credit and the Lifetime Learning Credit.

Gather your 1098-T and verify the numbers before you start

Your school mails the 1098-T by January 31 of the year after the tax year ends. It shows may have access to tuition and fees in Box 1, scholarships or grants in Box 5, and adjustments in Box 2. Before you enter any numbers into your tax return, compare these amounts to your own records — your tuition bill, receipts for books and supplies, and any scholarship letters.

Schools sometimes report incomplete information or make errors. If Box 1 shows $5,000 but you paid $6,500, or if Box 5 shows a scholarship amount that should not reduce your credit, you need to know this before you file. Call your school's financial aid office and ask them to issue a corrected 1098-T (called a "corrected" or "amended" form) if the numbers are wrong. This usually takes one to two weeks.

Also check whether the expenses on the 1098-T are actually may have access to expenses. Tuition and required fees count. Books, supplies, and equipment count only if required for enrollment. Room and board, transportation, and personal expenses do not count, even if your school lists them. If you paid for non-may have access to items, you will need to subtract them from the total before claiming your credit.

Determine which education credit you can claim

You have two choices: the American Opportunity Credit (up to $2,500 per student per year) or the Lifetime Learning Credit (up to $2,000 per household per year). You cannot claim both for the same student in the same year. The choice depends on the student's enrollment status and your income.

The American Opportunity Credit requires the student to be in their first four years of post-secondary education and enrolled at least half-time. It covers tuition, fees, and course materials. You can claim it for up to four tax years per student. The Lifetime Learning Credit has no enrollment-status requirement and no limit on how many years you can claim it, but the maximum credit is lower and it does not cover as many expenses.

If your income exceeds the phase-out range for either credit, you may not be able to claim it at all. The American Opportunity Credit phases out between $80,000 and $90,000 for single filers and $160,000 to $180,000 for married filing jointly (2023 tax year; these amounts change yearly). The Lifetime Learning Credit phases out between $59,000 and $69,000 for single filers and $118,000 to $138,000 for married filing jointly. Check your tax software or IRS Publication 970 to confirm your income does not disqualify you.

Account for scholarships and grants that reduce your credit

If you received a scholarship or grant, your school reports it in Box 5 of the 1098-T. This amount reduces the may have access to expenses you can use to calculate your credit. For example, if Box 1 shows $8,000 in tuition and Box 5 shows $3,000 in scholarships, your may have access to expenses for credit purposes are $5,000, not $8,000.

This rule exists because you cannot use the same dollar of expense to claim both a scholarship deduction and a tax credit. The IRS wants to prevent double-dipping. If you received a scholarship but your school did not report it in Box 5, you must subtract it yourself before calculating your credit. Keep your scholarship letter and any documentation showing the amount and what it covered.

Some scholarships are restricted to specific expenses (books only, or room and board). If your scholarship covered non-may have access to expenses, you do not have to subtract the full amount. Subtract only the portion that covered may have access to tuition and fees. This requires careful record-keeping, so write down what each scholarship covered when you receive it.

Enter the credit on Form 8863 or directly on your Form 1040

If you are claiming the American Opportunity Credit, you will use Form 8863 (Education Credits). This form walks you through calculating the credit based on your may have access to expenses and income. You enter the may have access to expenses (after subtracting scholarships), select which credit you are claiming, and the form calculates the credit amount. You then transfer that amount to your Form 1040.

If you are using tax software like TurboTax, H&R Block, or TaxAct, the software will ask you questions about education expenses and automatically complete Form 8863 for you. You enter the 1098-T information when prompted, and the software calculates the credit and places it on your return. Do not manually fill out Form 8863 if your software does this — let the software handle it to avoid errors.

If you are claiming the Lifetime Learning Credit instead, some tax software allows you to enter it directly on Form 1040 without filing Form 8863. Check your software's instructions. If you are filing by hand, you still need Form 8863 to calculate the credit, even though the form itself does not attach to your return.

Do not attach the 1098-T to your return, but keep it for your records

The 1098-T does not go in the envelope with your tax return. The IRS already has a copy because your school sent it to them. You keep your copy in a folder with your other tax documents — receipts, tuition bills, scholarship letters, and any corrected 1098-T forms you received.

If the IRS ever questions your education credit, they will ask you to prove that you paid the expenses you claimed. Your 1098-T, combined with your receipts and bills, provides that proof. Keep these documents for at least three years after you file, though the IRS can go back further if they suspect fraud.

If you received a corrected 1098-T during the tax year, use the corrected version and discard the original. If you received a corrected 1098-T after you already filed, you may need to file an amended return (Form 1040-X) to correct your credit. Your tax software or a tax professional can help you determine whether an amendment is necessary.

Handle situations where the 1098-T does not match what you paid

Sometimes the 1098-T shows expenses you did not actually pay out of pocket. This happens when your school paid part of your bill using financial aid, loans, or other funds. The IRS rule is that you can only claim a credit for expenses you actually paid yourself — not for amounts covered by loans or aid that you have not yet repaid.

If your 1098-T shows $10,000 in tuition but $6,000 came from a federal student loan and you only paid $4,000 yourself, your may have access to expenses for credit purposes are $4,000. You must subtract the loan amount. This is different from scholarships and grants, which your school should already have reported in Box 5. Loans are your responsibility to account for.

If the 1098-T shows expenses you did not pay and your school will not issue a corrected form, you can adjust the number yourself on Form 8863. Write a note explaining the adjustment and keep your documentation. This is not common, but it happens when students use loans to cover tuition that the school reports as paid.

Frequently Asked Questions

Do I have to use the full amount on the 1098-T, or can I claim less?

You can claim less than the amount shown on the 1098-T if you did not actually pay that much out of pocket, or if some of the expenses were not may have access to. You cannot claim more than what the form shows. If you paid more than the 1098-T reports, you can add the difference only if you have receipts proving you paid it and the school did not report it.

What if I did not receive a 1098-T from my school?

Contact your school's financial aid or registrar office. Schools are required to send the 1098-T by January 31. If it is past that date and you have not received it, ask them to send a copy or issue a corrected form. You can still claim the education credit without the form if you have your own records of what you paid, but having the 1098-T makes the process simpler.

Can I claim an education credit if I paid tuition for a future semester?

Only if you paid it in the tax year you are filing for. If you paid spring semester tuition in December 2023, you claim it on your 2023 return. If you paid it in January 2024, you claim it on your 2024 return. The payment date matters, not the semester date. Your 1098-T will show only expenses paid during the calendar year the form covers.

What happens if my income is too high to claim the credit?

You cannot claim the education credit if your income exceeds the phase-out range for that credit. The ranges change each year. If you are close to the limit, check IRS Publication 970 or ask a tax professional whether you may have access to. If you do not may have access to this year, you might may have access to in a future year if your income drops.

Can I claim both the American Opportunity Credit and the Lifetime Learning Credit in the same year?

Not for the same student. You must choose one credit per student per year. If you have two students in school, you can claim the American Opportunity Credit for one and the Lifetime Learning Credit for the other, but not both credits for the same person in the same tax year.