The 1098-T reports may have access to education expenses so you can claim tax credits for tuition and related costs

The Form 1098-T is an IRS document that colleges and universities send to students (and their parents) to report money paid for tuition, fees, and course materials during the tax year. It exists so you have proof of those expenses when you file your tax return. The form itself does not give you a credit — it documents what you spent, and then you decide whether to claim one of two education credits on your return: the American Opportunity Tax Credit or the Lifetime Learning Credit.

You will receive a 1098-T only if your school is an may be able to access institution (nearly all accredited colleges, universities, and vocational schools are) and you paid at least $1 for may have access to expenses in that tax year. The school reports what they received from you, not what you actually paid out of pocket — so if your parents paid the bill, the form goes to you anyway, but you and your parents will need to decide together who claims the credit.

Key Takeaways

  • The 1098-T reports may have access to education expenses paid during the tax year, and schools mail it to students by January 31 of the following year.
  • may have access to expenses include tuition and required fees, but not room, board, books purchased separately, or transportation.
  • You can claim either the American Opportunity Tax Credit (up to $2,500 per student per year) or the Lifetime Learning Credit (up to $2,000 per return per year), but not both in the same year.
  • If your parents paid your tuition, the 1098-T goes to you, but only one of you can claim the credit — you must coordinate on your tax return.
  • The form shows two boxes of expenses: Box 1 is what the school billed you, and Box 2 is scholarships and grants the school applied to your account.

What expenses appear on the 1098-T and what does not

The 1098-T includes only may have access to education expenses — a specific IRS list. Box 1 shows tuition and required fees that you paid to the school. Box 2 shows scholarships, grants, and other aid the school applied directly to your bill. The difference between these two boxes is what the IRS considers your actual out-of-pocket may have access to expense.

Expenses that do not appear on the 1098-T include room and board, books and supplies you bought yourself (unless the school bundled them into the bill), student loan interest, transportation, and health insurance. If you paid for books or a laptop separately, even though you needed them for school, they do not count as may have access to expenses for the purpose of the education credits. Some schools do bundle course materials into the tuition bill, in which case they are included in Box 1.

The difference between the American Opportunity and Lifetime Learning credits

You can claim one of two credits, but not both in the same year for the same student. The American Opportunity Tax Credit is worth up to $2,500 per student per year and is available only if the student is in their first four years of a degree program and is enrolled at least half-time. It covers tuition, fees, and course materials (including books). Up to $1,000 of this credit is refundable, meaning you can receive it even if you owe no tax.

The Lifetime Learning Credit is worth up to $2,000 per tax return per year (not per student) and has no enrollment-status requirement or limit on how many years you can claim it. It covers tuition and fees only, not books or materials. It is not refundable, so you can only use it to reduce tax you owe. If you have multiple students in school in the same year, you can split the $2,000 between them or explore it all to one.

If you are unsure which credit benefits you more, compare the two: the American Opportunity is usually larger if you are in your first four years, but the Lifetime Learning has no time limit and no enrollment requirement, so it works for graduate students or part-time learners.

How the 1098-T connects to scholarships and financial aid

If you received a scholarship or grant that the school applied directly to your tuition bill, that amount appears in Box 2 of the 1098-T. The IRS then subtracts Box 2 from Box 1 to calculate your may have access to expenses for credit purposes. This matters because scholarships reduce the amount you can claim a credit on — you cannot claim a credit on money you did not actually pay.

However, if you received a scholarship but used it for room, board, or books you bought yourself, those expenses do not reduce your may have access to expenses for the credit. Only scholarships applied to tuition and required fees reduce the credit. If you are unsure how your school applied your aid, contact the financial aid office and ask them to explain which charges the scholarship covered.

When you receive the 1098-T and what to do with it

Schools must send the 1098-T by January 31 of the year after you paid the expenses. For example, if you paid tuition in the fall and spring of 2024, you will receive the 1098-T in January 2025, and you use it to file your 2024 tax return. The form comes in the mail or, increasingly, through the school's online portal.

You do not send the 1098-T to the IRS with your return — you keep it for your records. When you file, you report the information from the form on Schedule 3 (Form 1040) if you are claiming the American Opportunity Credit, or on Form 8863 if you are claiming the Lifetime Learning Credit. Your tax software will usually ask you to enter the amounts from the 1098-T, and it will calculate which credit saves you more money.

Situations where you might not receive a 1098-T

You will not receive a 1098-T if you paid less than $1 in may have access to expenses during the year, or if your school is not an may be able to access institution (some flight schools, on-the-job training programs, and unaccredited schools do not may have access to). You also will not receive one if you paid through a third party — for example, if your employer paid your tuition directly to the school, the school may not issue a 1098-T to you.

If you paid may have access to expenses but did not receive a 1098-T, contact your school's financial aid or registrar office. They can issue a corrected form or provide documentation of what you paid. You can still claim an education credit without the form, but you will need to show proof of payment (receipts, bank statements, or a bill from the school) if the IRS asks.

Coordinating the 1098-T when parents pay tuition

If your parents paid your tuition, the 1098-T still goes to you (the student), not to them. However, only one person can claim the education credit — either you or your parents, not both. Before filing, you and your parents should discuss who will claim it. Usually, the person in the higher tax bracket benefits more, but this depends on income and other factors.

If your parents claim you as a dependent on their return, they can claim the education credit for your expenses even though the 1098-T is in your name — but you cannot also claim it. Make sure you and your parents coordinate so you do not both try to claim the same credit, which will trigger an IRS error.

Frequently Asked Questions

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

No. The 1098-T is just documentation of what you paid. You can choose not to claim a credit, or you can claim one only if it reduces your tax. Some students have no tax liability and would not benefit from a credit, so they do not claim one.

What if the 1098-T shows the wrong amount?

Contact your school's financial aid office when ready. They can issue a corrected 1098-T (Form 1098-T with an X in the "Corrected" box) before you file. If you already filed and the amount was wrong, you can file an amended return using Form 1040-X.

Can I claim a credit for expenses my student loans paid for?

No. Student loan proceeds are borrowed money, not money you paid. You can only claim a credit on money you actually paid to the school — whether from savings, income, scholarships, or family contributions. You can deduct student loan interest separately on Form 1040, but that is a different benefit.

If I take a leave of absence, do I still get a 1098-T?

Only if you paid may have access to expenses during the tax year. If you took a leave and paid nothing, the school will not issue a form. If you paid tuition before taking leave, the school reports what you paid in the year you paid it.

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 multiple students in school, you can claim the American Opportunity Credit for one and the Lifetime Learning Credit for another in the same tax year.