Students and parents - Why Form 1098-T is important to you? Revision Date 02/13/2015

• Legal Form Number: 1098-T
• Year: 2025
• Issuer: Treasury Department
• Section: Treasury Department

Students and parents

Why Form 1098-T is important to you?

It helps you identify eligible college expenses for

valuable education credits up to $2,500.

So, do not discard this form.

What are the education tax credits?

1. The AOTC, American Opportunity Tax Credit, can help pay for the rst four years of college if you

attend at least half-time. The credit provides up to $2,500 per student per year, or up to $10,000

over four years of education.

2. The LLC, Lifetime Learning Tax Credit, can help pay for any level of college or for education

courses that advance or improve your job skills. The credit provides up to $2,000 per return per

year.

How do I claim one of these credits?

These tax credits are available to taxpayers who paid education expenses for themself, their spouse

or for their dependent. To claim a credit, you must le a Form 1040 or Form 1040-A federal tax return

and complete Form 8863. Form 1098-T contains helpful information needed to complete Form 8863.

Can I still claim education tax credits if I got a Pell Grant or other scholarship?

Most likely you can. Some students may be able to increase their credit by including some of the

grant money in the student’s income. Students with tuition expenses and Pell Grants or other

scholarships should use the resources below to maximize their benets.

Use the Interactive Tax Assistant tool on IRS.gov to see if you can claim the credit.

Where can I learn more about these valuable tax credits for higher education?

Everything you need is online at Education Credits.

Publication 5197 (12-2014) Catalog Number 67467Z Department of the Treasury Internal Revenue Service www.irs.gov