How to Use Tax Form 1098-T (Education Credits)
Form 1098-T is the tuition form from your college. It is the key to education credits of up to $2,500 per student. But only one person can use it. That person is the one who claims the student as a dependent.
At a glance
- Cost:
- Free
- Total time:
- 1–2 hours
- Steps:
- 7 steps
- Where to apply:
- irs.gov, uscis.gov, travel.state.gov, or your state agency
Last reviewed October 2026 against official sources. Re-checked every 6 months · next review due April 2027.
The Steps
Follow these in order
Each card shows the phase, expected time, and any cost. Data checked against official US sources(October 2026).
0 of 7 steps
- Before You Go 10 min
Download the 1098-T from the student portal
Schools post the form in the bursar or student account section. They post it by January 31. Check Box 7 if the school billed you in December for spring tuition. The billed amount and the paid amount can differ. That timing gap is the #1 cause of confusion.
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- Before You Go 15 min
Determine who claims the credit
If the student is a dependent, the parents claim the credit. They claim it on their return. This is true even if the student paid. It is also true if the student took the loan. If the student is not a dependent, the student claims the credit. A student cannot claim a credit on their own return if someone else claims them as a dependent.
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- Fill / Prepare 20 min
Choose American Opportunity or Lifetime Learning
AOTC gives up to $2,500/student, and 40% of it can be paid back to you. You can use it only for the first 4 years of undergraduate study. You must be in school at least half-time. LLC gives up to $2,000/return, and it covers any level of study. It also covers classes to improve your job skills. You do not need a degree. You cannot claim both credits for the same student.
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- Fill / Prepare 30 min
Enter amounts actually paid, not just billed
The credit is based on tuition and fees you paid in the tax year. It is not based only on what the school billed. Compare the 1098-T Box 1 amount with your own payment records. Scholarships in Box 5 cut the amount you can claim. If a scholarship is more than the tuition, the extra can be taxable income for the student.
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- Fill / Prepare 30 min
Fill out Form 8863
You claim education credits on Form 8863, which works out the point where the credit phases out. For AOTC, that range is MAGI $80k–$90k for single filers and $160k–$180k for joint filers. For LLC, that range is $80k–$90k for single filers and $160k–$180k for joint filers. Tax software asks you questions. It fills in the form for you. Say yes when it asks about education costs. For the AOTC, the form also requires the school's EINEmployer Identification Number — A federal tax ID number for a business, like an SSN for the company. Issued free by the IRS.Click for official info ↗. That number is printed on the 1098-T.
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- Submit & Pay 10 min
File and keep the 1098-T with your records
You do not attach the 1098-T to your return. But keep it with your records. The IRS can ask for it. If the school reported the wrong amounts, ask the school for a corrected 1098-T before you file.
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- Follow Up 15 min
Do not double-benefit with 529 money
Money from a 529 plan that you use for tuition cannot also count for the credit. The same money cannot count twice. Use 529 money for room and board. Those costs do not count for the credit in any case. Pay at least $4,000 of tuition from other funds. That helps you get the full AOTC.
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Be Careful
Don't make these mistakes
Claiming both credits for the same student. You cannot claim both the American Opportunity Credit and the Lifetime Learning Credit for the same student. AOTC gives up to 2,500 dollars per student for the first 4 years of undergraduate study, while LLCLimited Liability Company — A business structure that protects your personal assets from business debts and lawsuits.Click for official info ↗ gives up to 2,000 dollars per return.
Using billed amounts instead of paid amounts. The credit is based on tuition and fees you paid in the tax year, not only on what the school billed. Compare the 1098-T Box 1 amount with your own payment records, and remember scholarships in Box 5 cut the amount you can claim.
Both parent and student claiming. If the student is a dependent, the parents claim the credit, even if the student paid the tuition or took out the loans. The credit goes with the person who claims the student as a dependent, and the IRSInternal Revenue Service — The US federal tax agency. It collects federal income taxes, issues refunds, and administers ITINs.Click for official info ↗ will reject the second claim.
Double-counting 529 money. Money from a 529 plan that you use for tuition cannot also count for the credit. The same money cannot count twice, so use 529 money for room and board instead, and pay at least 4,000 dollars of tuition from other funds to get the full AOTC.
Filing with an ITIN for 2026. Starting with tax year 2026, the person claiming the American Opportunity or Lifetime Learning Credit must have a Social Security number that is valid for work. An ITINIndividual Taxpayer Identification Number — A tax processing number for people who are not eligible for a Social Security number but must file US taxes.Click for official info ↗ no longer satisfies the requirement.
FAQ
Frequently Asked Questions
Can an international student claim the AOTC?
In most cases, no. You must be a US citizen to claim these credits. Or you must be a resident alien. Or you must be a dual-status alien who is taxed as a resident. F-1 students are nonresident aliens in most cases for their first 5 calendar years. They use Form 1040US Individual Income Tax Return — The standard federal income tax form. Variants like 1040-SR (seniors) and schedules attach to it.Click for official info ↗-NR. That form does not allow education credits. And starting with tax year 2026, even eligible claimants need a work-valid SSNSocial Security Number — A 9-digit number issued by the Social Security Administration. It is the main US identity number for work, taxes, and credit.Click for official info ↗. ITINs no longer qualify for either credit.
I file with an ITIN. Can I still claim education credits for 2026?
No. Starting with tax year 2026, the person claiming the American Opportunity or Lifetime Learning Credit must have a Social Security number that is valid for work. It must have been issued before the return's due date. If the credit is for a dependent student, the student needs one too. An ITIN no longer satisfies the requirement (IRS Publication 970, "What's New for Tax Year 2026").
My parents claim me as a dependent. Who gets the credit?
Your parents get it. They get it even if you paid the tuition yourself. They also get it if you took out loans in your name. The credit goes with the person who claims you as a dependent. It does not go with the person who paid. Talk with your parents before you both try to claim it. The IRS will reject the second claim.
Is the 1098-T the same as student loan interest?
No. The 1098-T reports tuition billed/paid by the school. Student loan interest comes on a different form. It comes on Form 1098-E. It is a deduction of up to $2,500 on your 1040 for loan interest. You can claim both. You can claim the tuition credit and the loan interest deduction.
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