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1098 Forms

Form 1098-T Instructions: Filing Rules, Boxes & Deadlines

Updated: May 28, 2026

What Is Form 1098-T and Who Must File?

An eligible educational institution files Form 1098-T for enrolled students with reportable transactions. It is used by the IRS to confirm education tax benefits. Form 1098-T is also filed by insurers that reimburse or refund qualified tuition and related expenses.

All the eligible educational institutions that are run by a government unit, agency, or instrumentality follow the same Form 1098-T filing rules.

If another party collects qualified tuition payments for the school and has the required reporting information, that party may need to file. Otherwise, the school remains responsible for filing Form 1098-T accurately and on time.

Also, unlike many 1099 forms, Form 1098-T does not have a dollar threshold.

The IRS also lists key Form 1098-T exceptions. Schools generally do not have to file for students in noncredit courses, nonresident alien students unless the student requests the form, students whose qualified tuition and related expenses are fully waived or fully covered by scholarships, and certain students billed through a formal employer or government arrangement when no separate financial account is maintained.

Form 1098-T Instructions: Box-by-Box Breakdown

The key to filling out 1098-T is to classify the amount first and then place it in the right box. For most schools, the biggest focus is Box 1.

The IRS says 1098-T box 1 instructions are based on payments received during the calendar year for qualified tuition and related expenses, reduced by the same-year refunds tied to those same-year payments. Box 1 is not reduced by scholarships or grants reported in Box 5.

Qualified tuition and related expenses include tuition, fees, and required course materials. What’s essential to keep in mind is that they do not include room and board, insurance, medical expenses, transportation, or similar personal costs.

The box treatment below follows the current IRS instructions:

Box What goes on the form Notes
Box 1 Total amount received as payments for qualified tuition and related expenses during the calendar year Reduced by same-year refunds tied to those payments; not reduced by scholarships or grants
Box 2 Reserved Leave blank
Box 3 Reserved Leave blank
Box 4 Current-year reductions or adjustments tied to amounts reported in a prior year. Used for prior-year reductions
Box 5 Scholarships or grants administered and processed by the institution Report separately from Box 1
Box 6 Reductions to scholarships/grants reported in an earlier year Used when prior-year scholarship or grant amounts are reduced
Box 7 Check Box 7 if Box 1 includes payments for an academic period beginning in January through March of the following year Common for spring-term prepayments made in December
Box 8 Check if the student was at least a half-time student Status indicator only
Box 9 Check if the student was a graduate student Status indicator only
Box 10 Insurance contract reimbursements or refunds for qualified tuition and related costs Generally used by insurers, not most schools

Student Data, TIN Collection, and Statement Delivery

Student data rules are just as important as box rules. The institution should collect the student’s TIN through Form W-9S or another paper or electronic form.

Form W-9S is optional, and institutions may gather the same information through their own paper or electronic forms. If the TIN is missing, the solicitation checkbox can be used only when the school made a timely written request and met the IRS good-faith standards.

The box can be checked if the school solicited the TIN in writing for the current year, obtained it properly in a prior year and has no reason to believe it is wrong, or filed without a TIN after making a written solicitation by December 31 of the year being reported.

The student’s permanent address should be used when known. A temporary address may be used only if the permanent one is not known. The form also needs a real information-contact phone number at the institution, not the school’s general switchboard.

Electronic statement delivery is allowed, but only with the student’s consent and the applicable disclosure and access rules. A student TIN may be truncated on the student statement, but not on the copy filed with the IRS.

Filing Deadlines and eFiling Rules

Form 1098-T follows the standard information return due dates. Note that if one of these dates is a Saturday, Sunday or legal holiday, the due date will be the following business day.

Filing action Deadline Notes
Furnish the statement to the student January 31 Copy must be provided to the student by this date
Paper file with IRS February 28 Applies only if paper filing is allowed
Electronic file with IRS March 31 Applies to e-filing through IRIS
Electronic filing requirement 10 or more aggregate information returns Filers meeting the threshold generally must e-file

The IRS lowered the electronic filing threshold to 10 aggregate information returns, counted across all return types. IRIS supports 1098-T electronic filing, and the Form 1098-T is available through the IRIS Taxpayer Portal.

Highest-Risk Filing Mistakes

The highest-risk mistakes are usually classification errors. They are not always missing forms. Common examples include reporting billed tuition instead of payments received. Another common issue is netting scholarships against Box 1.

Schools also miss Box 4 or Box 6 when prior-year adjustments apply. Box 7 is sometimes forgotten for spring-term amounts received in December.

Some filers treat non-credit programs as reportable enrollment. Others send electronic statements without proper consent or file without TIN solicitation support. Each of these mistakes can confuse students and create correction work for the institution.

Real-Life Examples of Following Form 1098-T Instructions

Scenario What happens How it is reported on Form 1098-T
Student pays tuition, required fees, and required course materials These amounts count as qualified tuition and related expenses when they are required for enrollment or attendance. The institution includes the qualified payment amount in Box 1.
Spring tuition is paid in December for classes starting in January The payment is made before the academic period begins, but the period starts in the first three months of the next year. The school reports the payment in Box 1 and checks Box 7.
Student receives a scholarship and also pays part of tuition out of pocket The scholarship is reported separately and does not reduce the Box 1 payment amount. The school enters qualified payments in Box 1 and the scholarship or grant in Box 5.
Student’s qualified tuition is fully waived or fully covered by scholarships When qualified tuition and related expenses are fully waived or fully paid with scholarships, the school generally does not have to file. The student generally falls under a Form 1098-T filing exception.
Nonresident alien student does not request Form 1098-T A school generally does not file Form 1098-T for a nonresident alien student unless the student asks for it. The student generally falls under a Form 1098-T filing exception.

FAQs

1. Is there a $600 filing threshold for Form 1098-T?

Form 1098-T is not based on a dollar threshold of reportable transactions; rather, it relates to reportable student transactions.

2. Does every enrolled student receive a Form 1098-T?

No. The IRS has several exceptions for the form, such as some noncredit courses or nonresident alien cases.

3. Can the institution send Form 1098-T electronically?

Yes, but only with student consent and the required furnishing rules.

4. Can Box 1 be reduced by scholarships?

No. Scholarships and grants belong in Box 5, not as a reduction to Box 1.

5. What if the student never provides a TIN?

The institution may still file if it followed the written solicitation rules and checked the TIN box correctly.

6. Does IRIS support Form 1098-T?

Yes. The IRS lists Form 1098-T as available through the IRIS Taxpayer Portal.

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