How Educational Institutions Should Properly Report Form 1098-T for Tuition Statements

Educational institutions must use Form 1098-T, Tuition Statement, to report information about tuition and related educational expenses. This form helps students and the IRS determine eligibility for education tax credits like the American Opportunity Credit and the Lifetime Learning Credit.

Here’s a clear breakdown of how schools should properly report Form 1098-T:

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

There are exceptions—schools are not required to file a 1098-T for:

• Nonresident alien students (unless requested)

• Students whose tuition is entirely waived or paid with scholarships

• Courses not offering academic credit (e.g., non-credit workshops)

What Must Be Reported

1. Box 1 – Payments Received for Qualified Tuition and Related Expenses
   As of 2018, schools must report actual payments received for QTRE in Box 1. They can no longer report based on amounts billed.

   Qualified expenses generally include:

   • Tuition

   • Enrollment fees

   • Course-related fees required for enrollment

   They do not include:

   • Room and board

   • Insurance

   • Medical fees

   • Transportation

   • Optional student fees

2. Box 5 – Scholarships or Grants
   Report the total amount of scholarships or grants administered or processed during the calendar year that may apply to tuition or related expenses.

3. Box 4 – Adjustments Made for a Prior Year
   Report any refunds or reductions in QTRE for prior years.

4. Box 6 – Adjustments to Scholarships or Grants
   If scholarship or grant amounts were adjusted from a prior year, report the difference here.

5. Box 7 – Checkbox for Payments in Advance
   Check this if Box 1 includes payments made for the upcoming academic period (e.g., a spring semester paid in December).

6. Box 8 – At Least Half-Time Student
   Check this if the student was enrolled at least half-time during any academic period in the calendar year.

7. Box 9 – Graduate Student
   Check this if the student was enrolled in a graduate program.

8. Box 10 – Insurance Contract Reimbursements (rare)
   Only filled in by insurers, not schools.

Filing and Furnishing Deadlines

• To students: January 31

• To IRS (paper): February 28

• To IRS (electronically): March 31