What is a 1098-T Form? School/College Tax Form

What is a 1098-T Form? As tax season approaches, many students and parents start gathering documents to maximize deductions and credits. One key form for those with education expenses is the 1098-T tax form, also known as the Tuition Statement. This document reports qualified tuition and related expenses paid to eligible educational institutions, helping taxpayers claim valuable education tax benefits. In this guide, we’ll break down what the 1098-T is, its importance for your taxes, and step-by-step instructions on how to obtain it—especially for the 2025 tax year.

Whether you’re a college student, a recent graduate, or a parent supporting higher education, understanding the 1098-T can lead to significant tax savings through credits like the American Opportunity Credit or Lifetime Learning Credit. Let’s dive in.

What is the 1098-T Tax Form?

The 1098-T, or Tuition Statement, is an IRS form provided by eligible educational institutions to report payments received for qualified tuition and related expenses (QTRE) during the calendar year. It’s not a tax return form you file yourself but rather an informational document sent to you and the IRS to verify education-related spending.

Key Details Reported on the 1098-T

  • Box 1: Payments received for qualified tuition and related expenses.
  • Box 4: Adjustments made for prior years.
  • Box 5: Scholarships or grants received.
  • Box 6: Adjustments to scholarships or grants for prior years.
  • Box 7: Indicates if the amount in Box 1 includes payments for an academic period beginning in the first three months of the next year.
  • Box 8: Checks if the student was enrolled at least half-time.
  • Box 9: Indicates if the student is a graduate student.
  • Box 10: Any reimbursements or refunds of QTRE from insurance contracts.

Eligible institutions include colleges, universities, vocational schools, and other postsecondary entities participating in federal student aid programs. These schools must file a 1098-T for each enrolled student with reportable transactions, such as tuition payments exceeding scholarships. Insurers may also file if they reimburse or refund QTRE.

For the 2025 tax year, institutions report on expenses from calendar year 2025, and forms are typically available by January 31, 2026. Note that not all students receive a 1098-T—if your scholarships fully cover tuition or you didn’t pay QTRE, you might not get one.

Why Do You Need the 1098-T Form?

The primary purpose of the 1098-T is to help you claim education tax credits or deductions on your federal tax return, potentially reducing your tax bill or increasing your refund. Without it, you may still claim benefits using other records like receipts, but the form simplifies verification and ensures accuracy.

Tax Benefits Linked to the 1098-T

  • American Opportunity Credit (AOC): Worth up to $2,500 per eligible student for the first four years of postsecondary education. It covers 100% of the first $2,000 in QTRE and 25% of the next $2,000. Up to $1,000 is refundable.
  • Lifetime Learning Credit (LLC): Up to $2,000 per tax return (20% of up to $10,000 in QTRE). It’s non-refundable and available for unlimited years, including graduate and professional courses.

To qualify for these credits, you must have paid QTRE not covered by scholarships, be enrolled in an eligible program, and meet income limits (e.g., for 2025, phaseouts start at modified adjusted gross income of $80,000 for single filers or $160,000 for joint). The 1098-T provides the necessary figures to calculate these credits accurately.

Additionally, the form can support deductions for student loan interest (though that’s reported on Form 1098-E) or state tax benefits. Always consult a tax professional, as rules can vary—there have been no major changes for 2025, but credits remain subject to annual inflation adjustments.

If you’re a dependent, your parents may use the 1098-T on their return. Failing to use it could mean missing out on thousands in tax relief, especially with rising tuition costs.

How to Access Your 1098-T Tuition Statement?

Educational institutions are required to furnish the 1098-T to students by January 31 (or the next business day if it falls on a weekend) and file with the IRS by February 28. For 2025 forms, this means availability around late January 2026.

Steps to Obtain Your 1098-T

  1. Check Your School’s Student Portal: Most colleges provide electronic access. Log into your student account (e.g., via PAWS at Georgia State or Zot!Portal at UC Irvine) and look for a “Tax Forms,” “Finances,” or “1098-T” section. You may need to grant consent for electronic delivery the first time.
  2. Email Notification: Schools often email when the form is ready. Check your school email for links to download from sites like tsc1098t.com or ECSI.
  3. Paper Mail Option: If you haven’t opted for electronic delivery, expect a mailed copy to your permanent address on file. Update your address in your student portal if needed. Some schools require an email request with ID for paper copies each year.
  4. If You Don’t Receive It: Contact your school’s bursar or student financial services office. Provide your student ID and request a duplicate. You can still file taxes using bank statements or receipts, but the 1098-T is preferred for IRS audits.
  5. Third-Party Services: For some institutions, access via dedicated sites like 1098tforms.com or through vendors like Heartland ECSI.

For international students or those with special circumstances (e.g., only receiving grants), confirm eligibility with your school. Remember, the form is based on the school’s records—discrepancies? Reach out promptly.

Tips for Using Your 1098-T Effectively

  • Verify Accuracy: Compare the form against your payment records. Report errors to your school.
  • File Electronically: Use tax software like TurboTax, which can import 1098-T data for easy credit calculations.
  • Deadlines: Tax returns are due April 15, 2026, for most filers—don’t wait to access your form.
  • Common Myths: The 1098-T doesn’t report all expenses (e.g., books if not billed by the school), so track additional QTRE separately.

By leveraging the 1098-T, you can unlock education tax credits that make higher learning more affordable. If you’re unsure about eligibility or calculations, consult IRS resources or a tax advisor. Stay organized, and happy filing!