Your 1098-T Form might look confusing at first glance. We鈥檙e here to help you decode the boxes and their contents.
Box 1
Box 1 shows the payments that the school received for qualified tuition and related expenses during the previous year. It also includes Scholarships and Grants received for Tuition or related expenses. You may be able to deduct some or all of this amount from the income you report on your federal tax return.
Box 2
Box 2 shows the amounts billed for qualified tuition and related expenses during the previous year. You may be able to deduct some or this entire amount from the income you report on your federal tax return. As of 2018, Box 2 is not being filed and is no longer an option, per federal regulations.
Box 3
Schools can either report billed or paid amounts, and are required to report if a change is made in reporting method. If Box 3 is checked, your school has simply changed its reporting method.
Box 4
Box 4 shows any adjustment, refunds towards reductions, or reimbursements made for any prior year for qualified tuition and related expenses that were reported on a prior year鈥檚 1098-T Form. This amount could reduce any allowable education credit that you claimed for any prior year.
Box 5
Box 5 shows the total of all scholarships or grants processed and administered by the eligible school or university. The amount of grants or scholarships for the calendar year (including those not reported by your institution) could reduce the amount of the education credit you can claim for the year.
Box 6
Box 6 shows any adjustments to grants and scholarships for a previous year. The amount in this box may affect the amount of any allowable tuition and fees deduction or education credit that you claimed for the previous year. You may have to file an amended income tax return (Form 1040X) for the previous year.
Box 7