What is IRS Form 1098-T?
IRS Form 1098-T, also called the Tuition Statement, is an information return issued by eligible educational institutions to report qualified tuition payments, scholarships, and enrollment information. It helps students determine whether they qualify for US education tax credits, including the American Opportunity Tax Credit and Lifetime Learning Credit.
Studying overseas doesn’t exempt US citizens from US tax rules. If you’re attending university in the UK, Canada, Australia, or another country, you may still qualify for valuable education tax benefits. However, many students are surprised to learn that they never receive Form 1098-T from their university or they receive one that looks different from what they expected.
That’s because Form 1098-T is issued only by eligible educational institutions, and not every foreign university is required to provide it.
Last updated July 08, 2026
Written by: Grace Lorraine Angeles
In this article
What is IRS Form 1098-T?
IRS Form 1098-T is a tuition statement that eligible educational institutions issue to students and the IRS to report qualified tuition payments and certain education-related information.
Unlike a tax return, Form 1098-T isn’t something you complete or submit yourself. Instead, your college or university prepares the form each year to help you determine whether you’re eligible to claim education tax credits on your federal income tax return.
Example:
Emily is a US citizen completing a master’s degree in London. During the tax year, she pays qualified tuition and receives a scholarship from her university. If her university is an eligible educational institution for US tax purposes, it may issue Form 1098-T reporting those amounts. Emily can then use the information, along with her own records, to determine whether she qualifies for an education tax credit on her US tax return.
Why did I receive Form 1098-T?
You typically receive Form 1098-T if you attended an eligible educational institution that received qualified tuition payments on your behalf or administered scholarships or grants during the tax year.
You may receive Form 1098-T if:
- You enrolled in an eligible college, university, or other postsecondary educational institution.
- You paid qualified tuition and related expenses during the tax year.
- You received scholarships, grants, or other educational assistance.
- Your institution is required to issue Form 1098-T under IRS reporting rules.
Not every student will receive Form 1098-T. For example, certain institutions and students are exempt from the reporting requirements, and many foreign universities are not required to issue the form.
Important! Receiving Form 1098-T does not automatically mean you qualify for a US education tax credit. Likewise, not receiving the form doesn’t necessarily mean you’re ineligible. Many foreign universities don’t routinely issue Form 1098-T. However, some US citizens studying abroad may still qualify for education tax credits if they meet the IRS requirements.
What information is included on Form 1098-T?
Form 1098-T reports tuition payments, scholarships, enrollment information, and other details that may affect your eligibility for US education tax credits.
Although the form contains several numbered boxes, most students only need to focus on a few key sections when preparing their tax return.
What does Box 1 show?
Box 1 reports payments received for qualified tuition and related expenses during the tax year. This amount reflects payments made for eligible education expenses, but it doesn’t automatically determine the education credit you can claim. Qualified expenses generally include:
- Tuition
- Mandatory enrollment fees
- Required course materials, depending on the education credit being claimed and whether they meet IRS qualified expense rules.
Housing, meal plans, transportation, insurance, and most optional fees typically don’t qualify.
What does Box 5 show?
Box 5 reports scholarships and grants administered by your educational institution during the tax year. Scholarships and grants reported in Box 5 may reduce the qualified education expenses you can use to calculate certain education tax credits. If scholarship amounts exceed your qualified expenses, part of the scholarship may become taxable depending on how the funds were used.
Examples reported in Box 5 may include:
- Academic scholarships
- Need-based grants
- Employer educational assistance administered through the school
- Certain government education grants
Besides tuition payments and scholarships, Form 1098-T also includes information that helps establish your eligibility for education tax benefits.
Depending on your circumstances, the form may include:
|
Information |
Why it matters |
|
Student name and taxpayer identification number |
Identifies the student claiming education benefits. |
|
Educational institution’s name, address, and EIN |
Identifies the school that issued the form. |
|
Half-time enrollment indicator |
Required for certain education credits, including the American Opportunity Tax Credit. |
|
Graduate student indicator |
Helps determine eligibility for specific education tax benefits. |
|
Adjustments for prior years |
Reflects changes to previously reported tuition payments or scholarships. |
How do I use Form 1098-T when filing my US tax return?
You use Form 1098-T to help determine whether you’re eligible to claim US education tax credits. You don’t attach the form to your tax return. Instead, the information reported on Form 1098-T is used alongside your own records to calculate education-related tax benefits, if you’re eligible.
For most taxpayers, Form 1098-T is used when completing IRS Form 8863, which is filed with your federal income tax return to claim the American Opportunity Tax Credit (AOTC) or the Lifetime Learning Credit (LLC).
The IRS considers several factors when determining whether you qualify for these credits, including your filing status, income, qualified education expenses, and whether you meet the specific eligibility rules for the credit you’re claiming.
Example
Olivia is a US citizen completing her undergraduate degree at an eligible university in the UK. Her university issues Form 1098-T showing qualified tuition payments and a scholarship. When preparing her US tax return, she uses the information from Form 1098-T together with her tuition records to complete Form 8863 and determine whether she qualifies for the American Opportunity Tax Credit.
Tip: Keep copies of your tuition invoices, payment confirmations, and scholarship statements. Form 1098-T is an important record, but it may not include every detail needed to accurately calculate your education tax credit.
Which education tax credit can you claim?
Most students who receive Form 1098-T will consider either the American Opportunity Tax Credit or the Lifetime Learning Credit. While both credits help reduce the cost of higher education, they have different eligibility requirements.
|
Credit |
Best suited for |
|
American Opportunity Tax Credit (AOTC) |
Eligible students pursuing their first undergraduate degree who meet the IRS requirements. |
|
Lifetime Learning Credit (LLC) |
Eligible undergraduate, graduate, or professional degree students, or individuals taking qualifying courses to improve their job skills. |
You generally can’t claim both credits for the same student in the same tax year. If you’re eligible for both, it’s worth comparing which provides the greater tax benefit based on your individual circumstances.
Do Americans studying abroad receive Form 1098-T?
Sometimes. Americans studying abroad may receive Form 1098-T if they attend an eligible educational institution that is required to issue the form. However, not every foreign university is required to provide Form 1098-T.
Whether you receive Form 1098-T depends on the institution and your circumstances, not simply the country where you study. An eligible educational institution can be located inside or outside the United States, provided it meets the IRS requirements.
Example:
A US citizen completes a master’s degree at a university in the UK. If that university qualifies as an eligible educational institution and is required to furnish Form 1098-T, the student may receive the form. Another student attending a different university in the UK may not receive Form 1098-T because that institution isn’t required to issue it.
Although both students are studying in the same country, their US tax reporting may look very different.
Key takeaway: Don’t assume you’ll receive Form 1098-T simply because you’re attending university abroad. Whether a form is issued depends on the school’s reporting obligations and your individual circumstances—not the country where you’re studying.
Does my foreign university qualify as an eligible educational institution?
A foreign university may qualify as an eligible educational institution if it participates in the US Department of Education’s federal student aid programs.
Students can check whether a foreign university participates in US federal student aid programs by using the US Department of Education/Federal Student Aid foreign school list. However, students should confirm the school’s status carefully, as some foreign schools may appear for deferment-only purposes.
That means some universities in countries such as the UK, Canada, Australia, Germany, and the Netherlands may qualify, while others may not.
Can I claim an education tax credit without Form 1098-T?
Yes, sometimes. You may still be able to claim an education credit if you didn’t receive Form 1098-T because your school wasn’t required to issue one or because it failed to provide the form, provided you otherwise meet the IRS requirements.
In general, the IRS requires students claiming the American Opportunity Tax Credit or the Lifetime Learning Credit to receive Form 1098-T. However, there are exceptions. For example, you may still qualify if:
- Your educational institution wasn’t required to furnish Form 1098-T.
- Your school was required to issue the form but didn’t provide it after you requested it.
- You can demonstrate that you were enrolled at an eligible educational institution.
- You can substantiate your qualified tuition and related expenses with supporting documentation.
If the institution was required to issue Form 1098-T but did not provide it, the student or taxpayer must request the form after the IRS furnishing deadline and before filing the tax return. They must also cooperate with the institution and keep records showing enrollment and qualified education expenses.
What documents should I keep if I don’t receive Form 1098-T?
If you don’t receive Form 1098-T, keep records that show your enrollment, qualified education expenses, and any scholarships or grants. These documents may help support your education tax credit claim if the IRS requests additional information.
Depending on your situation, you should keep copies of:
- Tuition invoices or billing statements
- Payment confirmations or bank records showing tuition payments
- Enrollment verification from your educational institution
- Scholarship or grant award letters
- Receipts for qualified education expenses, if applicable
- Correspondence with your university regarding Form 1098-T or your enrollment
If you’re studying abroad, retaining these records is especially important. Foreign universities may have different reporting practices than US institutions, and some may not issue Form 1098-T even if they qualify as an eligible educational institution for US tax purposes.
Tip: Keep your education records for at least as long as the IRS can examine your tax return. If you’re unsure how long to retain your documents, consult the IRS recordkeeping guidance or a qualified tax professional.
What happens if I never receive Form 1098-T?
Not receiving Form 1098-T doesn’t automatically mean you aren’t eligible for a US education tax credit. However, you should determine why the form wasn’t issued before filing your tax return.
There are several reasons you may not receive Form 1098-T. In many cases, it’s simply because your educational institution wasn’t required to issue the form. In others, it may be due to an administrative error or a change in your enrollment status.
If you expected to receive Form 1098-T but didn’t, consider taking these steps:
- Check your student portal. Many colleges and universities provide Form 1098-T electronically rather than mailing a paper copy.
- Contact your school’s financial aid or bursar’s office. They can confirm whether a form was issued and, if necessary, provide a corrected copy.
- Keep your education records. Tuition invoices, payment receipts, scholarship statements, and enrollment records can help support your tax return if additional documentation is needed.
- Confirm whether your institution is an eligible educational institution. If you’re studying abroad, your university may qualify even if it doesn’t issue Form 1098-T.
Although it may be tempting to assume you can’t claim an education credit without the form, the IRS provides limited exceptions in certain situations. If you’re unsure whether an exception applies, it’s worth reviewing the IRS requirements before filing your return.
Frequently Asked Questions
Can parents claim an education tax credit using their child’s Form 1098-T?
Yes, if the student is claimed as a dependent and all IRS eligibility requirements are met. In most cases, the parent claims the education credit on their federal income tax return.
Education credits also depend on filing status, income limits, taxpayer identification rules, and other IRS eligibility requirements. Taxpayers filing as married filing separately cannot claim these credits.
Can graduate students use Form 1098-T?
Yes. Graduate students may receive Form 1098-T if their educational institution issues it. While graduate students generally aren’t eligible for the American Opportunity Tax Credit, they may qualify for the Lifetime Learning Credit if they meet the IRS requirements.
Can exchange students receive Form 1098-T?
It depends. US citizens participating in an exchange program may receive Form 1098-T if they’re enrolled at an eligible educational institution that is required to issue the form. The country where the exchange takes place doesn’t determine eligibility on its own.
Does receiving a scholarship affect my education tax credit?
It can. Scholarships and grants reported on Form 1098-T may reduce the amount of qualified education expenses you can use to calculate certain education tax credits.
Can I receive Form 1098-T if my tuition was paid by someone else?
Possibly. Educational institutions generally report qualified tuition payments regardless of who made the payment. However, who can claim an education tax credit depends on the IRS rules regarding dependents, education expenses, and who is treated as having paid the tuition.
What should I do if the information on my Form 1098-T is incorrect?
Contact your educational institution as soon as possible. If your tuition payments, scholarship amounts, or personal information are incorrect, ask the school to issue a corrected Form 1098-T before you file your US tax return.
Can I use Form 1098-T to claim a tuition deduction?
No. The tuition and fees deduction is no longer available. Form 1098-T is now primarily used to help determine eligibility for education tax credits, such as the American Opportunity Tax Credit and the Lifetime Learning Credit.
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Grace Lorraine, an IRS Enrolled Agent and CPA with 15 years of expat tax experience, specializes in US tax preparation, tax planning, and tax advice for US citizens and Green Card holders living and working in the Middle East. Grace is also an expert in handling Streamlined Filing Compliance Procedure cases.
