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Form 1098-T Box 7: January to March Academic Period

Updated October 17, 2026. Quick answer: Box 7 of Form 1098-T is a checkbox. It tells you that part of the box 1 amount relates to an academic period that begins in the first months of the following year. It concerns anyone who paid in one year for a term starting soon after. Publication 970 says where those payments count for an education credit.

Line-by-line IRS form guides for 2025: Form 8863 lines 20 to 22 and Form 8863 lines 23 to 26.

What box 7 reports

The student copy says box 7 “Shows whether the amount in box 1 includes amounts for an academic period” that begins in the opening months of the next year, and it adds: “See Pub. 970 for how to report these amounts.” It is a flag, not an amount. When it is checked, something in box 1 is for a term that has not started yet. The matching dollar amount is in Form 1098-T box 1, and the whole form is mapped in the Form 1098-T and 1098-E boxes guide.

How the school decides to check it

The filer instructions give the school its test: “Check this box if any payments received for qualified tuition and related expenses reported for 2025 relate to an academic period that begins in January through March of 2026.”

Publication 970 describes an academic period this way: “An academic period includes a semester, trimester, quarter, or other period of study (such as a summer school session) as reasonably determined by an educational institution.”

Why the first months of the next year matter

Publication 970 addresses payments for such a term in its prepaid-expense rule: “Qualified education expenses paid in 2025 for an academic period that begins in the first 3 months of 2026 can be used in figuring an education credit for 2025 only.”

It gives an example: “if you pay $2,000 in December 2025 for qualified tuition for the 2026 winter quarter that begins in January 2026, you can use that $2,000 in figuring an education credit for 2025 only (if you meet all the other requirements).” “You can’t use any amount you paid in 2024 or 2026 to figure the qualified education expenses you use to figure your 2025 education credit(s).”

The lifetime learning credit chapter makes the same point with its own numbers: “if you paid $1,500 in December 2025 for qualified tuition for the spring 2026 semester beginning in January 2026, you may be able to use that $1,500 in figuring your 2025 credit.” Those dollar amounts are the publication’s examples, not yours. The general rules are on the education credits page.

How it affects eligibility tests

The same timing shows up in the tests for who counts as an eligible student. For the American opportunity credit, the publication says the student must have been enrolled at least half-time “For at least one academic period beginning in 2025 (or the first 3 months of 2026 if the qualified expenses were paid in 2025)”. One of its examples applies this directly: “Because the tuition Glenda paid in 2025 relates to an academic period that begins in the first 3 months of 2026, the eligibility to claim an American opportunity credit in 2025 is determined as if the 2026 spring semester began in 2025.” The half-time check box on the form is the subject of Form 1098-T box 8.

A refund or assistance that touches both years

When a term straddles two years, the publication lets you pick which year to reduce. It says: “If you pay qualified education expenses in both 2025 and 2026 for an academic period that begins in the first 3 months of 2026 and you receive tax-free educational assistance, or a refund, as described above, you may choose to reduce your qualified education expenses for 2026 instead of reducing your expenses for 2025.” That choice only arises when you paid in both years. If you also see an amount in Form 1098-T box 4 or Form 1098-T box 5, read those boxes against the same term.

Edition and box numbers

The primary read for this page is the 2025 edition of Form 1098-T with its student instructions, the 2025 Instructions for Forms 1098-E and 1098-T, and Publication 970 for 2025 returns. The 2026 edition was the one irs.gov served as current on 2026-10-17, and this box is where the two editions differ. On the 2025 form the period is January through March of 2026; on the 2026 form the filer instructions read “Check this box if any payments received for qualified tuition and related expenses reported for 2026 relate to an academic period that begins in January through March of 2027.” The 2026 student copy still opens its box 7 entry with “Shows whether the amount in box 1 includes amounts for an academic period” and then names the later months of the next year. The tax year printed on your form tells you which year’s window you are looking at. Check the tax year printed on the form you received before relying on any box description here, because the instructions are reprinted every year.

Common mistakes

  • Reading the checkbox as the amount of the prepayment. The instructions say it applies “if any payments received” relate to a later term, so the dollar split is not on the form.
  • Using a payment from the wrong year. The publication warns “You can’t use any amount you paid in 2024 or 2026 to figure the qualified education expenses you use to figure your 2025 education credit(s).”
  • Counting the prepaid term toward the later year’s credit as well. The publication says such payments can be used “in figuring an education credit for 2025 only”.

Related: Form 1098-T, education credits, 529 state tax benefits, and Form 1040.

Sources

Read from the IRS documents linked above on October 17, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.

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