What Information is Included on a 1098-t Form?
What Information is Included on a 1098-t Form? – If you are a student, a parent, or have ever paid college tuition, chances are you have heard the name of the 1098-T form. But the real question is—what is this form? What is written in it? What is its role during tax season? And most important—how to use the information given in it?
Let’s understand step-by-step in simple and easy ways. We will go into detail about what is in the 1098-T form, what each box means, and how you can use that data to your advantage. This is not some boring IRS manual—this is real stuff for real people.
What is the 1098-T Form?
The 1098-T form, also known as the “Tuition Statement,” is a tax form that colleges and universities in the USA send to students and the IRS. This form states how much the student spent on education during the tax year.
In simple terms: It tells the IRS how much tuition you paid and how much financial assistance (such as a scholarship or grant) you received—so you can decide whether you are eligible for education tax credits (such as the American Opportunity Credit or the Lifetime Learning Credit).
Main purpose: You or your tax preparer can claim education-related tax benefits.
Why is the 1098-T Form so important?
Because the information on the 1098-T form directly affects your tax refund or tax liability. By using this form you can reduce your tax bill or increase your refund—and sometimes you can even get the benefit of thousands of dollars!
And if you are a student or you are paying college fees, then every single dollar is important. So this form can become a means of smart saving for you.
When and where do you get the 1098-T Form?
You usually get this form by 31 January every year:
• By mail – the address you have given in your college records
• Online – through student portal or any service like Heartland ECSI
So keep checking both your email and mailbox till the end of January.
What all is written in 1098-T Form?
Now coming to the most important part. You might be wondering what information is there in 1098-T form, and what is the meaning of each box.
Let us understand each box in easy language.
Box 1 – Payments for Qualified Tuition and Related Expenses
This is the most important section. Box 1 tells you how much you actually paid to the college in tuition and related fees over the course of the year.
Qualified expenses include:
• Tuition
• Mandatory enrollment fees
• Sometimes course-related fees
But they do not include:
• Room and board
• Transport
• Medical insurance
• Late fees
Its importance: This is the amount you will use to calculate education tax credits.
Want details? IRS website.
Box 2 – (No longer used)
Earlier, this box used to report the billed amount, but it has been removed after 2018. Now colleges only report the paid amount (Box 1) – which is more accurate.
Box 3 – Checkbox for Reporting Method Change
If the college has changed its reporting method this year (e.g. from billed to paid), this box will be checked. Most colleges have already changed, so it is usually blank.
Box 4 – Previous Year’s Adjustment
If you dropped a class or got a refund last year, the adjustment for that is shown here. Example: You dropped a class in 2024 but paid in 2023—that’s shown in Box 4.
Caution: These adjustments can affect claims from the previous tax year, and the return may need to be amended.
Box 5 – Scholarships or Grants
This box shows how many scholarships, grants, or third-party payments you received that were processed through the school.
Examples:
• Pell Grants
• State/institutional scholarships
• Tuition waivers
This amount can reduce your tuition claim.
Pro Tip: If the amount in Box 5 is more than in Box 1, you may owe tax on that difference.
Box 6 – Previous Year Scholarship Adjustments
If a scholarship from last year was refunded or reduced, that adjustment is shown here. This can also affect last year’s tax filing.
Box 7 – Future Semester Payment Checkbox
If you paid tuition in advance for a semester in 2025 (such as Spring 2026), this box will be checked.
Why it matters: You can also claim this payment on this year’s tax return.
Box 8 – Half-Time Enrollment
If you were at least a half-time student throughout the year, this box will be checked. Having half-time status is a requirement for the American Opportunity Credit.
Box 9 – Graduate Student Status
If you were enrolled in a graduate program such as a Master’s or PhD, this box should be checked. This does not directly affect tax credit, but does refer to the IRS.
Box 10 – Insurance Refunds (Very rare)
This is only used if the college is also an insurer and you have received a refund for insurance premium. Mostly this is blank for people.
Summary: What is there in 1098-T Form?
Here’s a quick recap of what information is included on a 1098-T form in table format:
| Box | What It Includes |
|---|---|
| 1 | Payments received for tuition/fees |
| 2 | (No longer used) |
| 3 | Change in reporting method |
| 4 | Adjustments to prior year tuition |
| 5 | Scholarships and grants |
| 6 | Adjustments to prior scholarships |
| 7 | Future semester payment info |
| 8 | Half-time status |
| 9 | Graduate status |
| 10 | Insurance refunds |
How to use the 1098-T form on a tax return?
Now that you understand what information is on the 1098-T form, the next step is to use that information to file a tax return.
You may be eligible for these credits:
1. American Opportunity Credit (AOTC)
• Up to $2,500/year benefit per student
• Conditions:
o Enrolled half-time
o Pursuing an undergraduate degree
o Be in the first 4 years of college
2. Lifetime Learning Credit (LLC)
• Up to $2,000 credit per return
• Also applicable for graduate or part-time students
Check: IRS education credits
Tax software usually asks for data in Box 1 and Box 5 to check eligibility.
What if there is a mistake on the 1098-T form?
If you find the wrong SSN, amount, or scholarship missing on the form, contact your school’s financial aid office or registrar immediately. They can issue you a corrected 1098-T.
A mistake could delay your refund or result in a loss of credit.
Final Thoughts: What is the value of the 1098-T form?
Understanding what information is on the 1098-T form is not just a boring tax task—it’s an opportunity.
If you use it correctly, this form:
• Can reduce your taxes
• Will help you plan for future semesters
• Can avoid errors and audits
• Can clear your total college payments
So whenever you see a 1098-T form in your inbox or mailbox, don’t ignore it. Open it, understand it, and use it.
You (or your parents) have worked hard for your education—so every possible tax benefit has to be taken.
FAQs on What Information is Included on a 1098-t Form?
1. What is the use of 1098-T Form?
This shows how much tuition you paid and how many scholarships or grants you received for claiming the education tax credit.
2. What is in Box 1?
Box 1 shows how much money you paid for qualified tuition and fees.
3. What is in Box 5?
This shows the total amount of scholarships or grants received through school.
4. Are textbooks or hostel charges included in this form?
No. Only tuition and fees are included—books, room, meals, or transport are not included.
5. If you don’t receive a 1098-T, can you claim credit?
Yes, if you have receipts for your expenses, you can still claim the credit.
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