Tuition Credit Form 1098-T

The IRS Form 1098-T, Tuition Statement is sent to students who pay tuition at a qualifying college or similar higher education institutions.

The Form 1098-T lists expenses related to education, and can help determine the student's eligibility for deductions and tax credits related to tuition and education. If the student is categorized as a dependent, then the parents or guardians of the student may be granted eligibility for the credits and deductions.

There are two methods for reporting expenses a student incurred. The school can opt to report the amount a student actually paid, by listing the total in Box 1 of the form, or they can report how much they billed the student, as evident in Box 2.

If a school has adjusted the qualifying expenses from a previous year's 1098-T, it will be reported in Box 4.

Students who received grants or scholarships to help offset expenses will show an amount in Box 5. This amount may reduce the total qualifying expenses that can be used toward a credit or deduction.

Any amounts listed in Box 6 relate to adjustments made by the school to scholarship or grant reporting on a previous year's 1098-T.

Box 7 of the 1098-T refers to the amounts listed in Box 1 or 2, and whether they include an academic term that extends beyond the coverage time of the year.