IRS Form 1098-T – Navigating tax forms can be daunting, especially when it comes to education-related deductions and credits. If you’re a student, parent, or guardian dealing with college expenses, IRS Form 1098-T, also known as the Tuition Statement, is a key document you need to understand. This form reports payments for qualified tuition and related expenses, helping you claim valuable education tax credits like the American Opportunity Credit or Lifetime Learning Credit. In this SEO-optimized guide, we’ll break down what Form 1098-T is, who receives it, how to interpret its boxes, and how it impacts your 2025 tax return. We’ll draw from official IRS sources to ensure accuracy and relevance for the current tax year.
What Is IRS Form 1098-T?
IRS Form 1098-T is an informational tax form issued by eligible educational institutions to students (or their parents/guardians if claimed as dependents) who have made payments toward qualified tuition and related expenses during the calendar year. It’s not a bill or a tax return itself but a statement that helps you report education expenses on your federal tax return. The form is required for claiming education-related tax benefits and must be filed by the institution with the IRS.
Eligible institutions include colleges, universities, vocational schools, and other postsecondary entities that participate in federal student aid programs under the Higher Education Act. Insurers may also file the form if they provide reimbursements or refunds for qualified expenses.
For the 2025 tax year, the form reflects transactions from calendar year 2025, including payments received and any adjustments. Note that this is an “Info Copy Only” version if downloaded from the provided PDF link, meaning it’s for reference and not for official filing.
Who Receives Form 1098-T and When?
Eligible educational institutions must send Form 1098-T to any student enrolled in courses for which they received payments of qualified tuition and related expenses. This includes tuition, fees, and required course materials. You won’t receive the form if:
- Your expenses were fully covered by scholarships or waivers.
- You’re a nonresident alien (unless you request it).
- The courses don’t offer academic credit.
- Expenses are covered by a formal billing arrangement with an employer or government entity, like the VA.
Institutions are required to furnish the form to students by January 31, 2026, and file it with the IRS by February 28, 2026 (or the next business day if it falls on a weekend). If you haven’t received yours, contact your school’s bursar or financial aid office. Electronic delivery is allowed with your consent.
Breaking Down the Boxes on Form 1098-T
Form 1098-T contains several boxes that report specific financial details. Here’s a detailed explanation based on the latest IRS instructions for 2025:
- Box 1: Payments Received for Qualified Tuition and Related Expenses – This shows the total payments your institution received in 2025 for qualified expenses, minus any refunds or reimbursements related to those payments. It includes payments from all sources, like loans or third parties.
- Box 2 and Box 3: Reserved – These are currently reserved for future use and may be blank.
- Box 4: Adjustments Made for a Prior Year – Reports any refunds or reductions in qualified expenses from a previous year (after 2002) that were reported on a prior Form 1098-T. This could affect your prior-year taxes, potentially requiring an amended return (Form 1040-X).
- Box 5: Scholarships or Grants – Total scholarships or grants processed by the institution in 2025, including those from third parties like Pell Grants. These may reduce your eligible expenses for tax credits.
- Box 6: Adjustments to Scholarships or Grants for a Prior Year – Any reductions to scholarships reported in prior years, which might impact previous tax returns.
- Box 7: Checkbox for Academic Period Beginning January–March 2026 – Checked if Box 1 includes payments for classes starting in early 2026.
- Box 8: At Least Half-Time Student – Checked if you were enrolled at least half-time in 2025, based on your institution’s standards aligned with Department of Education guidelines.
- Box 9: Graduate Student – Checked if you were in a graduate-level program.
- Box 10: Ins. Contract Reimb./Refund – For insurers only: Total reimbursements or refunds of qualified expenses in 2025.
The form also includes your TIN (partially masked for privacy), address, and the institution’s contact info. Here’s a visual example of what Form 1098-T looks like:
How to Use Form 1098-T for Your Taxes?
Use the information from Form 1098-T to complete IRS Form 8863 (Education Credits) when filing your 2025 tax return. Subtract scholarships (Box 5) from payments (Box 1) to calculate your net qualified expenses. This can qualify you for:
- American Opportunity Credit: Up to $2,500 per student for the first four years of postsecondary education.
- Lifetime Learning Credit: Up to $2,000 per return for any postsecondary education.
Consult IRS Publication 970 (Tax Benefits for Education) for eligibility and calculations. Remember, some scholarships may be taxable income, potentially increasing your credit amount.
If there’s an error on your form, contact your institution for a corrected version. For e-filing updates in 2025, institutions filing 10 or more returns must e-file via the IRS’s Information Reporting Intake System (IRIS).
Common FAQs About IRS Form 1098-T
What if I didn’t receive my Form 1098-T?
Check your student portal or contact the school. They must provide it by January 31.
Can I claim credits without the form?
Yes, but you’ll need to substantiate expenses with receipts. The form simplifies the process.
Are all expenses on the form qualified?
No—qualified expenses are limited to tuition, fees, and required materials. Room and board don’t count.
What if Box 7 is checked?
It means some expenses apply to the next tax year, so adjust your claims accordingly.
For more details, visit the official IRS page on Form 1098-T or download the info copy PDF from https://www.irs.gov/pub/irs-pdf/f1098t.pdf.
Final Thoughts on Managing Education Tax Benefits
IRS Form 1098-T is essential for unlocking education tax savings, but understanding its details ensures you maximize benefits without errors. Always cross-reference with IRS guidelines and consider consulting a tax professional for personalized advice. Stay updated on changes by visiting IRS.gov, especially as tax laws evolve. If you’re filing for 2025, start gathering your documents now to make tax season smoother.