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1098-T Tax Information

IRS Form 1098-T Tuition Statement is an information form filed with the Internal Revenue Service by Temple University.  The form is issued by January 31 each year for the previous tax year (January 1 to December 31). Among other things, it provides:

  • In Box 1, the amount of Qualified Tuition and Related Expenses paid on the student account during the tax year.
  • In Box 5, the amount of Scholarships and Grants posted to the student account during the tax year.

You, or the person who may claim you as a dependent on their federal tax return, may be able to claim an education tax credit or deduction on Form 1040 or 1040A for Qualified Tuition and Related Expenses paid during the year. Receiving Form 1098-T does not guarantee that you qualify to claim an education tax credit or deduction.

The 1098-T form is only informational; none of the amounts reported are expected to be used as part of a ‘plug and play’ entry. The amounts on the 1098-T might be different than what you paid. When figuring the credit/deduction, use the amounts you paid during the tax year for qualified education expenses.

Temple University staff can only answer questions related to how the 1098-T was generated. Each taxpayer should consult with a professional tax advisor for explanations relating to the eligibility requirements for education tax credits and deductions.

Please note that the 1098-T is an informational form, but your documentation is the most important information that you can use to support a claim for a federal tax credit or deduction. For tax purposes, you can print your student account activity by accessing the Printable Student Account Statement for a record of semester transactions.

Tax Credits

There are two tax credits available to help you offset the costs of higher education by reducing the amount of your income tax. They are the American Opportunity Tax Credit and the Lifetime Learning Tax Credit, which apply to educational expenses paid during the tax year.

A tax credit reduces the amount of income tax you may have to pay. Unlike a deduction, which reduces the amount of income subject to tax, a credit directly reduces the tax itself.

American Opportunity Tax Credit

The American Opportunity Tax Credit is up to $2,500 for qualified education expenses paid for each eligible student. Your allowable American Opportunity credit may be limited by the amount of your income.

Generally, you can claim the American Opportunity Tax Credit if all three of the following requirements are met.

  1. You paid qualified education expenses of higher education.
  2. You paid the education expenses for an eligible student.
  3. The eligible student is yourself, your spouse, or a dependent you claim on your tax return.
Lifetime Learning Tax Credit

With the Lifetime Learning Tax Credit, you may be eligible to claim a credit of up to $2,000 for the total qualified tuition and related expenses paid during the tax year for all eligible students in the family.  There is no limit on the number of years the Lifetime Learning Tax Credit can be claimed for each student.

Generally, you can claim the Lifetime Learning Tax Credit if all three of the following requirements are met.

  1. You paid qualified education expenses of higher education.
  2. You paid the education expenses for an eligible student.
  3. The eligible student is yourself, your spouse, or a dependent you claim on your tax return.

Taxpayer Resources

Contact the IRS at www.irs.gov or 1-800-829-1040 or consult with a professional tax preparer or advisor. The following resources may be helpful: