Form 1098-T and education tax credits
Updated: 2026
Form 1098-T is a useful starting point for education expenses, but it does not by itself determine the credit. Actual qualified expenses paid, scholarships, and student status also matter.
Form 1098-T is a starting point
An eligible school generally provides Form 1098-T with information about tuition, scholarships, and adjustments. Amounts on the form can differ from the qualified expenses actually paid during the tax year.
Bring the 1098-T together with the student account statement or billing history so payments, refunds, scholarships, and other adjustments can be reviewed.
AOTC and Lifetime Learning Credit
The American Opportunity Tax Credit and Lifetime Learning Credit have different rules for education level, number of years, types of expenses, and other eligibility factors. Form 8863 is used to claim an education credit.
A credit should not be selected simply because a 1098-T exists. First determine who claims the student, which expenses were paid, and which limitations apply.
Expenses, scholarships, and other assistance
Tuition and other qualified expenses must be considered together with scholarships, grants, employer assistance, refunds, and reimbursements. The same expense cannot be used twice for different tax benefits.
Books, supplies, or equipment can matter in some situations. Keep receipts and records showing the education purpose of those costs.
What to prepare
Gather Form 1098-T, the school account statement, proof of actual payments, scholarship and grant information, and receipts for potentially qualifying course materials. Also identify the student and who will claim the student on the tax return.
What to prepare
A list of documents and supporting records for credits, dependents, mileage, expenses, and foreign items.