Accurate Form 1098-T, Tuition Statement reporting helps students and families claim valuable education tax credits—and helps your institution avoid preventable compliance issues. This guide walks you through who must file, what belongs on the form, key deadlines, common exceptions, and practical ways to stay on track.
If you handle year-end tax reporting for a college, university, or postsecondary school, understanding the rules for qualified tuition and related expenses (QTRE), scholarships, adjustments, and TIN collection is essential. For official guidance, review the IRS resources for About Form 1098-T and the Instructions for Forms 1098-E and 1098-T.
What is Form 1098-T and why it matters
Form 1098-T is used by eligible educational institutions to report certain information about students to both the IRS and the students themselves. Students and families use the form to help determine eligibility for education tax credits, including the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC).
While the form itself does not determine credit eligibility, accurate reporting is still critical. It supports correct tax returns and can help reduce confusion or follow-up notices from the IRS. For more on those credits, see the IRS page on Education Credits (AOTC and LLC).
Who must file and who should receive a statement
Generally, an eligible educational institution must file a Form 1098-T for each enrolled student for whom a reportable transaction is made during the calendar year. This typically includes accredited colleges, universities, and postsecondary vocational schools that are eligible to participate in U.S. Department of Education student aid programs.
Common exceptions
You are not required to file Form 1098-T for the following students:
- Students enrolled in courses for which no academic credit is offered.
- Nonresident alien students, unless requested by the student.
- Students whose qualified tuition and related expenses are entirely waived or entirely paid with scholarships or grants.
- Students whose only charges are non-qualified expenses, such as room and board.
If any portion of a student’s QTRE is paid—and not entirely waived or covered by grants—a Form 1098-T is generally required. That is true even if a third party, such as an employer or government agency, made the payment.
Understanding QTRE is central to correct reporting. The distinction between qualified and non-qualified charges directly affects what you report on Form 1098-T.
Included as QTRE
- Tuition charges required for enrollment or attendance.
- Mandatory fees required as a condition of enrollment or attendance.
- Course materials only if students are required to purchase them directly from the institution.
Not included as QTRE
- Room and board, meal plans, transportation, and insurance.
- Medical expenses, student health fees not required for enrollment, and similar personal expenses.
- Course materials purchased from off-campus or non-institutional vendors, unless payment is required to the institution.
- Application fees, if not required to be paid as a condition of enrollment or attendance.
Consistent classification matters. If your institution includes non-qualified charges in reportable amounts, you increase the risk of inaccurate student statements and downstream tax issues.
What to report on Form 1098-T
Since 2018, institutions report payments received for QTRE in Box 1. The old “amounts billed” method is no longer used.
Key boxes explained
- Box 1–Payments received for QTRE: Total payments received during the calendar year for QTRE, from any source. This includes student payments, loans, third-party payers, and scholarships or grants applied to charges. Refunds of QTRE reduce the amount.
- Box 4–Adjustments to prior-year QTRE: Decreases to amounts reported in a previous year’s Box 1, such as a refunded charge.
- Box 5–Scholarships or grants: Aggregate amount of scholarships, grants, and similar aid administered and processed by the institution during the year. Do not include loans.
- Box 6–Adjustments to prior-year scholarships or grants: Reductions or increases to awards previously reported in Box 5.
- Box 7–Future periods: Check this box if any payments in Box 1 relate to an academic period beginning in the first three months of the following year, such as spring tuition paid in December.
- Box 8–At least half-time: Check this box if the student was at least half-time for any academic period during the year.
- Box 9–Graduate student: Check this box if the student was a graduate-level student for any academic period during the year.
One important detail: the presence of scholarships in Box 5 can affect a student’s education credit calculation. That makes accuracy especially important.
Deadlines, delivery methods, and TIN collection
- Student recipient deadline: January 31 for the prior calendar year.
- IRS filing deadlines: February 28 for paper filing and March 31 for electronic filing.
- Extensions: A 30-day extension to file with the IRS may be requested using Form 8809.
If you need a broader filing-season date reference, BoomTax also provides a helpful guide to 2026 deadlines for 1095, 1099, W-2, 940, and 941 forms.
Electronic delivery of student statements
- Obtain the student’s affirmative consent before furnishing the statement electronically.
- Disclose how to access, print, and retain the statement, along with software and hardware requirements and how to withdraw consent.
- If an electronic notice bounces back as undeliverable, take reasonable steps to reach the student or send a paper copy.
Collecting and validating TINs
- Request the student’s TIN, usually an SSN or ITIN, commonly using Form W-9S.
- Make solicitations in a timely manner, including initial and, if needed, annual solicitations, to demonstrate good-faith compliance.
- If a student fails to provide a TIN after proper solicitations, file the form with as much information as available and keep documentation of your solicitations.
Practical examples
Example 1: Spring tuition paid in December
In December 2025, a student pays $5,000 for Spring 2026 tuition, and all of it is QTRE. On the 2025 Form 1098-T, you would report $5,000 in Box 1.
You would also check Box 7 because the payment relates to a term beginning in the first three months of 2026. If the student receives a $2,000 Pell Grant posted in January 2026, that amount appears in Box 5 of the 2026 Form 1098-T.
Example 2: Scholarship and partial refund
In 2025, a student pays $6,000 in QTRE and later receives a $3,000 scholarship posted in the same year. In that case, Box 1 shows $6,000 and Box 5 shows $3,000.
If in 2026 you refund $1,000 of the 2025 QTRE because of a dropped class, report that $1,000 as a prior-year adjustment in Box 4 on the 2026 form.
Example 3: Half-time graduate student
A graduate student enrolled half-time for Fall 2025 pays $4,500 in QTRE in August 2025. Box 1 shows $4,500.
You should check both Box 8 for at least half-time status and Box 9 for graduate student status.
Common pitfalls to avoid
- Including non-qualified charges, such as room and board, in Box 1.
- Forgetting to check Box 7 for December payments applied to a spring term.
- Omitting mandatory fees that are part of QTRE.
- Misclassifying institutional aid in Box 5 or leaving out third-party grants administered by the school.
- Missing or invalid TINs due to weak solicitation and validation processes.
- Not issuing corrected statements when prior-year adjustments are discovered.
Corrections and amendments
If you discover an error after furnishing or filing a Form 1098-T, issue a corrected statement to the student and file a corrected return with the IRS. Follow the IRS instructions for marking the corrected form and updating the appropriate boxes, including Boxes 4 or 6 for prior-year adjustments.
Keep documentation showing what changed and why. If you also manage other information return corrections, BoomTax offers resources for filing Form 1099 corrections that can help reinforce good correction workflows.
Penalties and how to reduce risk
Penalties may apply for late filing, failing to furnish statements on time, or filing with missing or incorrect information. Penalty amounts vary and generally increase the later a correction occurs.
To reduce risk, focus on process and documentation:
- Start data reconciliation early and verify QTRE classifications.
- Perform TIN solicitations and validations well before year-end.
- Offer and manage electronic consent properly to speed delivery.
- Keep clear audit trails of payments, scholarships, and adjustments.
- Use a calendar for due dates and consider filing electronically to minimize errors.
Electronic filing can streamline reporting and reduce manual mistakes. If your team is evaluating filing tools more broadly, BoomTax provides solutions for eFiling tax forms online.
Compliance checklist
- Confirm which students require a Form 1098-T and apply exceptions carefully.
- Classify charges into QTRE versus non-QTRE consistently.
- Reconcile Box 1 payments to student ledgers and reflect refunds and timing correctly.
- Aggregate scholarships and grants for Box 5 and track prior-year adjustments.
- Check Boxes 7, 8, and 9 accurately based on enrollment data.
- Obtain and document TIN solicitations using Form W-9S or an equivalent process.
- Furnish by January 31, file by IRS deadlines, and retain records.
FAQs
Do I have to issue a 1098-T if a sponsor or employer pays the tuition?
Generally, yes. If QTRE is paid, even by a third party, and not entirely waived or covered solely by scholarships or grants, a Form 1098-T is usually required.
How do loans affect Box 1?
Loan proceeds applied to QTRE count as payments received and should be included in Box 1 when posted to the student’s account. Loans are not reported in Box 5.
Are bookstore purchases QTRE?
Only if the institution requires students to purchase course materials directly from the school as a condition of enrollment or attendance. Otherwise, they are not QTRE for Form 1098-T purposes.
Do I need a form for nonresident alien students?
Not unless the student requests it. If requested, and if reportable transactions exist, you should furnish and file the form.
Bringing it all together
Accurate, timely reporting supports students and families at tax time and helps protect your institution from penalties. When you understand qualified expenses, track scholarships and adjustments correctly, and follow delivery and TIN procedures, you can meet Form 1098-T reporting requirements with more confidence.
Form 1098-T Reporting Requirements for Educational Institutions: Key takeaways
- Report payments received for QTRE in Box 1; amounts billed are no longer used.
- Apply exceptions carefully, including no-credit courses, certain nonresident alien students, and fully waived or fully grant-covered QTRE.
- Track scholarships and grants separately from loans and adjust prior-year amounts as needed.
- Meet the January 31 student delivery deadline and IRS filing deadlines of February 28 for paper and March 31 for electronic filing.
- Use proper electronic consent and TIN solicitation procedures.
If you need a quick refresher during filing season, revisit this section. These points summarize the essential Form 1098-T reporting requirements for educational institutions.
This article is for informational purposes only and does not constitute legal or tax advice. Always consult the latest IRS instructions for Form 1098-T and consider seeking professional guidance for your institution’s specific circumstances.
BoomTax, The Boom Post, and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors prior to engaging in any transaction.
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