How Educational Institutions Should Properly Report Form 1098-T for Tuition Statements
adminadmin
- IRS Form 1098-T
Educational institutions must use Form 1098-T, Tuition Statement to report tuition and related educational expenses. This form helps students—and the IRS—determine eligibility for education tax credits such as:
-
The American Opportunity Credit
-
The Lifetime Learning Credit
Who Must File Form 1098-T?
Colleges, universities, vocational schools, and other eligible postsecondary institutions must file Form 1098-T for each enrolled student who:
-
Paid qualified tuition and related expenses (QTRE), or
-
Received reimbursements or refunds for QTRE during the year
Exceptions: Schools do not need to file a 1098-T for:
-
Nonresident alien students (unless they request it)
-
Students whose tuition is fully waived or paid entirely with scholarships
-
Students enrolled only in non-credit courses (e.g., workshops)
What Must Be Reported
Box 1 – Payments Received for QTRE
Since 2018, schools must report actual payments received, not amounts billed. Qualified expenses include:
-
Tuition
-
Enrollment fees
-
Course-related fees required for enrollment
They do not include:
-
Room and board
-
Insurance or medical fees
-
Transportation
-
Optional student fees
Box 5 – Scholarships or Grants
Report the total amount of scholarships or grants processed during the year that apply to tuition or related expenses.
Box 4 – Adjustments for a Prior Year
Include any refunds or reductions in QTRE for prior years.
Box 6 – Adjustments to Scholarships or Grants
Report any changes to scholarships or grants from a prior year.
Box 7 – Payments for the Next Academic Period
Check this box if Box 1 includes payments for an upcoming academic period (e.g., spring semester paid in December).
Box 8 – At Least Half-Time Student
Check this if the student was enrolled at least half-time during the year.
Box 9 – Graduate Student
Check this if the student was enrolled in a graduate program.
Box 10 – Insurance Contract Reimbursements
Only insurers—not schools—complete this box.
Filing and Furnishing Deadlines
-
To students: January 31
-
To IRS (paper): February 28
-
To IRS (electronic): March 31