Form 1098-T: How to complete and file your tuition statement

To report your tuition statement, use the IRS Form 1098-T. It serves as a tuition statement that colleges and universities send to students to report qualified tuition and related expenses paid during the tax year. Use a tool like pdfFiller to complete, manage, store, and securely share Form 1098-T online.

• Form 1098-T reports tuition payments to the IRS and helps you claim education tax credits.
• Schools (and some insurers) file Form 1098-T for each enrolled student with a reportable transaction, then furnish a student statement.
• Box 1 is payments received for qualified tuition and related expenses (QTRE) and is not reduced by scholarships shown in Box 5.
• For tax year 2025, the American Opportunity Tax Credit is up to $2,500 per eligible student, and the Lifetime Learning Credit is up to $2,000 per return.
• pdfFiller provides a secure platform to view, edit, and share your tax documents while adhering to top security standards like the ESIGN Act.

Tax season means extra paperwork, especially for students and families managing higher education costs. If you or your dependent attended college last year, you likely received the 1098-T tuition statement. It verifies that you paid qualified tuition and related expenses to an eligible educational institution.

Understanding this form is key to claiming valuable education tax credits. In this guide, we’ll explain the 1098-T form, compare the AOTC and LLC, and show you how to prepare the form correctly. Also, read our general guide on all major tax credits for more information.

What is Form 1098-T (tuition paid statement)?

Form 1098-T, also known as a “tuition statement,” summarizes your qualified tuition payments and related expenses for the tax year. Educational institutions must file this form for every enrolled student with a reportable transaction. This allows the IRS to verify that the education credits you claim match the payments the school received.

The form reports what the school processed during the year (tuition, fees, and course materials) but excludes personal payments like room and board, insurance, or transportation.

The information on Form 1098-T may differ from the actual amount you paid and includes additional details about your institution. Key information provided includes:

• Adjustments made for prior years
• Amount of scholarships, grants, reimbursements, or refunds
• Whether the student was enrolled at least half-time
• Whether the student was a graduate student

Who has to complete and file Form 1098-T?

As the IRS explains, eligible educational institutions must file Form 1098-T for each enrolled student with a reportable transaction.

However, the IRS lists some exceptions, including:

• Certain nonresident alien students (unless requested)
• Students whose tuition is fully waived or paid with scholarships
• Students under certain formal billing arrangements

For students/taxpayers (the recipient)

Most taxpayers do not “file” Form 1098-T with the IRS. They receive it and use it to help claim education benefits on their income tax return—most often by completing Form 8863.

When is Form 1098-T due?

Form 1098-T has two main deadlines: one for sending copies to students and one for filing with the IRS.

Deadline for students:

You must provide students with their Form 1098-T by 31 January (February 2, 2026).

Deadline for the IRS:

• Paper filing: Mail your forms by the end of February (March 2, 2026).
• Electronic filing: E-file your forms by March 31, 2026.

Keep in mind that the IRS requires you to e-file if you’re submitting 10 or more information returns.

Update for 2025 education credit amounts and phase-outs

Tax laws change often, so it’s important to know the current limits for the 2025 tax year. The IRS adjusts eligibility rules and income phase-outs each year for inflation.

• In 2025, the American Opportunity Tax Credit offers up to $2,500 per eligible student. Income limits for the full credit may change, so check the latest IRS guidelines.
• The Lifetime Learning Credit provides up to $2,000 per tax return, regardless of the number of qualifying students. Phase-out ranges determine if your modified adjusted gross income is too high to claim the full benefit. If your income exceeds the upper limit, you cannot claim the credit.

The IRS Publication 970 shows education benefits phasing out at:

• $80,000–$90,000 (single/head of household/qualifying surviving spouse)
• $160,000–$180,000 (married filing jointly)

American Opportunity Tax Credit (AOTC) requirements

The American Opportunity Tax Credit (AOTC) is a valuable education tax credit that helps cover costs for the first four years of higher education. To qualify for the 2025 tax year, the key requirements are:

1. The student is pursuing a program leading to a degree or recognized credential.
2. The student has not completed the first 4 years of postsecondary education before 2025.
3. The student was enrolled at least half-time for at least one academic period beginning during 2025 (or treated as such for certain prepaid periods).

The credit covers 100% of the first $2,000 of qualified educational expenses and 25% of the next $2,000. This means the maximum annual credit is $2,500 per student.

When you receive your 1098-T, check Box 8 to see if you are at least a half-time student, which is a key requirement for this credit. pdfFiller allows you to securely share your 1098-T with your parents or tax preparer so they can verify these details quickly.

Lifetime Learning Credit (LLC) requirements

Unlike the AOTC, the Lifetime Learning Credit (LLC) can be used for undergraduate, graduate, and professional degree courses — plus any courses taken to acquire or improve job skills. Since there’s no limit on the number of years you can claim the LLC, it’s a great option for graduate students and lifelong learners.

The Lifetime Learning Credit (LLC) allows you to claim up to $2,000 per tax return, regardless of the number of students. Unlike the AOTC, the LLC is non-refundable, meaning it can reduce your tax bill to zero but won’t provide a refund for any leftover amount. Students don’t need to be pursuing a degree or enrolled half-time to qualify.

Note: You cannot claim the LLC for a student if you also claim the AOTC for that student in the same tax year.

Using pdfFiller’s annotation tools, document tags, and smart folders can help you organize your forms and track which credit you plan to apply to which student.

How to use 1098-T for Form 8863

Once you have your 1098-T, you must transfer the information to Form 8863: Education Credits. This is the specific IRS form used to calculate and claim your education tax credits. You will use the figures from your tuition statement to complete the relevant parts of Form 8863.

A practical workflow:

1. Confirm eligibility (AOTC vs. LLC) and identify the eligible student(s).
2. Use Box 1 as a starting point, then reconcile to what you actually paid during the tax year (receipts/account statements).
3. Reduce qualifying expenses for tax-free educational assistance where required, and avoid “double-dipping” with 529/ESA distributions.
4. Enter the school’s information (including EIN when required for AOTC) and complete Form 8863.

Understanding 1098-T boxes (qualified expenses, scholarships/grants)

The 1098-T form contains several numbered boxes that provide specific financial details:

• Box 1 shows the total payments the school received for qualified tuition and related expenses. This is the key figure for calculating your tax credit.
• Box 5 reports any scholarships or grants the school processed. This amount reduces your qualified expenses, potentially lowering your tax credit. If the amount in Box 5 is greater than the amount in Box 1, the difference may be taxable income.
• Box 4 and Box 6 handle adjustments for a prior year. If the school changes the amount of tuition charged or scholarships reported in a previous year, these adjustments appear here.
• Box 7 indicates if the amounts in Box 1 include amounts for an academic period beginning January-March of the following year.
• Box 8 and Box 9 are enrollment indicators (half-time and graduate student), which can affect eligibility assessments.

How can pdfFiller help with your Form 1098-T?

pdfFiller is a secure, reliable platform that simplifies document management, especially for important tax forms like the 1098-T. With pdfFiller, you can efficiently prepare, organize, store, and share your tuition statement, all in one place. Here’s what you can do:

1. Import a 1098-T from pdfFiller Form Library or upload it from your device or cloud storage if you already obtained a fillable template from the IRS website.
2. Use pdfFiller’s editing tools to fill out form boxes. Add sticky notes with questions to your team if unsure about specific boxes or numbers.
3. Organize your tax documents in smart folders and use tags for faster access.
4. Send your completed tuition statement directly to your tax professional or anyone else.
5. Access and manage your 1098-T whenever you need it, from any device.

A screenshot of the 2025 IRS Form 1098-T, Tuition Statement, shown within the pdfFiller editor interface.

What if 1098-T doesn’t match actual expenses?

This is one of the most common questions: “What if my 1098-T is wrong?” The 1098-T may not perfectly match your payment records because it reports payments received within the calendar year. For example, a check mailed in late December might not post until January.

The IRS states that when calculating an education credit, you should only include the amounts you paid during the tax year.

If the numbers don’t add up, follow these steps:

1. Review the student account details for the calendar year (charges, payments, refunds, and aid disbursements).
2. Separate QTRE from non-QTRE items (e.g., room/board are not QTRE).
3. If the form seems incorrect, request a corrected 1098-T from the school, especially if it’s after the furnishing deadline.
4. Keep documentation like receipts, statements, and proof of enrollment/payment in case of IRS inquiries.

529 plans and 1098-T coordination

If you used a 529 college savings plan to pay for school, you must coordinate your 1098-T with Form 1099-Q. The 1099-Q reports distributions from qualified education programs.

The IRS has a “no double benefit” rule, which means you can’t use the same expenses to justify both a tax-free 529/ESA distribution and claim an education credit like the American Opportunity Tax Credit or the Lifetime Learning Credit.

What you can do:

1. Calculate your substantiated QTRE.
2. Allocate sufficient expenses to ensure tax-free 529 or ESA distributions.
3. Use any remaining eligible expenses for AOTC or LLC calculations, prioritizing AOTC when eligible, as it is larger and partially refundable.

Disclaimer: This article is general guidance, not tax advice—when in doubt, follow the official IRS instructions or consult a tax professional.

Final thoughts

Form 1098-T is a critical document for students and families dealing with education tax credits. Understanding what it is and how it relates to the American Opportunity Tax Credit and the Lifetime Learning Credit can help you maximize your benefits and stay compliant with IRS rules.

Using pdfFiller to manage your Form 1098-T and other tax documents simplifies the entire process. With its secure platform, you can easily fill out, annotate, and share your tax reports anytime, from anywhere. From organizing documents in smart folders to collaborating with your tax professional, pdfFiller helps you prepare for tax season with less stress.

Start your free trial with pdfFiller today and experience a seamless way to handle your tax forms.