How do I read my 1098-T tax form?

The box descriptions below are for informational purposes only. If you have questions regarding the tax treatment of any item reported on your 1098T, we recommend that you contact a tax professional.

Box 1: Payments received for qualified tuition and related expenses

This box shows the total payments received from any source for qualified tuition and related expenses for the calendar year, less any related reimbursements or refunds.

Box 2: Amounts billed for qualified tuition and related expenses

This box will be blank. Educational Institutions may choose whether to report by payments received or amounts billed; they are not required to report both amounts.

Box 3:

This box will be left blank, since the university has not changed its current method of reporting from the previous year.

Box 4: Adjustments made for a prior year

This box shows any adjustment made for a prior year for qualified tuition and related expenses that were reported on a prior year Form 1098-T. This amount may reduce any allowable education credit that you claimed for the prior year (may result in an increase in tax liability for the year of the refund). For more information see "recapture" in the index to Pub. 970 to report a reduction in your education credit or tuition and fees deduction.

Box 5: Scholarships or grants - 3rd party payments

This box shows the total of all scholarships or grants administered and processed by the university. Scholarships and grants generally include all payments received from 3rd parties (excluding family members and loan proceeds). This includes payments received from governmental and private entities such as the Department of Defense, civic, religious organizations, etc. The amount of scholarships or grants for the calendar year (including those not reported by the institution) may reduce the amount of the education credit you claim for the year.

Box 6: Adjustments to scholarships or grants for a prior year

This box shows adjustments to scholarships or grants for a prior year. This amount may affect the amount of any allowable tuition and fees deduction or education credit that you claimed for the prior year. You may have to file an amended income tax return (Form 1040X) for the prior year.

Box 7:

This box shows whether the amount in box 1 or 2 includes amounts for an academic period beginning in the following reporting year (January - March). See Pub. 970 for how to report these amounts.

Box 8:

This box shows whether you are considered to be carrying at least one-half the normal full-time workload for your course of study at the reporting institution. If you are at least a half-time student for at least one academic period that begins during the year, you meet one of the requirements for the American opportunity credit. You do not have to meet the workload requirement to qualify for the lifetime learning credit.

Box 9:

This box shows whether you are considered to be enrolled in a degree program leading to a graduate degree, graduate-level certificate, or other recognized graduate-level educational credential.

Box 10:

This box shows the total amount of reimbursements or refunds of qualified tuition and related expenses made by an insurer. The amount of reimbursements or refunds for the calendar year may reduce the amount of any education credit you can claim for the year (may result in an increase in tax liability for the year of the refund).

For additional information on 1098-T form, please see the Related Articles section to the right.