Updated October 17, 2026. Quick answer: Box 1 of Form 1098-T shows the payments the school received for qualified tuition and related expenses during the year, less refunds of those same payments. It concerns the student named on the form and whoever claims an education credit for that student. The credit itself is figured on Form 8863 and carried to the return, and Publication 970 warns that box 1 may differ from what you actually paid.
IRS worksheets read line by line: Pub 970 Worksheet 1-1.
Line-by-line IRS form guides for 2025: Form 8863 lines 9 to 19, Form 8863 lines 27 to 30 and Form 8863 line 31.
What box 1 reports
The student copy of the form describes the box in one sentence: “Shows the total payments received by an eligible educational institution in 2025 from any source for qualified tuition and related expenses less any reimbursements or refunds made during 2025 that relate to those payments received during 2025.”
Three phrases in that sentence matter. The amount is what the institution received. It counts payments from any source, whoever the payer is, and it is net of refunds made in the same year for those same payments. The other boxes on the statement are laid out in the Form 1098-T and 1098-E boxes guide, and the general walk-through of the statement is on the Form 1098-T page.
What counts as qualified tuition and related expenses
The filer instructions give the definition the school works from: “Qualified tuition and related expenses are tuition, fees, and course materials required for a student to be enrolled at or attend an eligible educational institution.” The same instructions say what is left out. “The following are not qualified tuition and related expenses.” “Charges and fees for room, board, insurance, medical expenses (including student health fees), transportation, and similar personal, living, or family expenses.”
They also exclude hobby coursework in some cases: “Amounts paid for any course or other education involving sports, games, or hobbies, unless the course or other education is part of the student’s degree program or is taken to acquire or improve job skills.” If your school bill also included housing or a meal plan, that part of the bill does not belong in box 1, so box 1 can be smaller than the total you paid the school.
Box 1 at a glance
The table below sets out how the filer instructions treat the amount in this box.
| Question | What the instructions say |
|---|---|
| What the box counts | “Enter the total amount of payments received for qualified tuition and related expenses from all sources during the calendar year.” |
| What is taken out | “The amount reported is the total amount of payments received less any reimbursements or refunds made during the calendar year that relate to the payments received for qualified tuition and related expenses during the same calendar year.” |
| What is not taken out | “The amount reported is not reduced by scholarships and grants reported in box 5.” |
| Past-due amounts | “Include in this box the receipt of a payment of past-due qualified tuition or related expenses from a previous calendar year, but only if the educational institution previously billed the student for such amount(s).” |
The third row is the one people trip over. Scholarships and grants have their own box, and they are not subtracted inside box 1. That is why the two boxes have to be read together, which is the subject of Form 1098-T box 5.
Why box 1 may not equal what you paid
Publication 970 is direct about this. In its reminders it says: “When figuring an education credit, use only the amounts you paid and are deemed to have paid during the tax year for qualified education expenses.” “However, the amount on Form 1098-T might be different from the amount you actually paid and are deemed to have paid.”
The publication repeats the point in its American opportunity credit chapter: “An institution will report payments received (box 1) for qualified education expenses.” “When figuring the credit, use only the amounts you paid or are deemed to have paid in 2025 for qualified education expenses.”
Where the amount goes on the return
Box 1 is not itself a line on Form 1040. It supports an education credit. The student copy states: “This statement is required to support any claim for an education credit.” “To see if you qualify for a credit, and for help in calculating the amount of your credit, see Pub. 970, Form 8863, and the Instructions for Form 1040.”
For the American opportunity credit, the publication says: “You claim the American opportunity credit by completing Form 8863 and submitting it with your Form 1040 or 1040-SR.” “Enter the nonrefundable part of the credit on Schedule 3 (Form 1040), line 3.” “Enter the refundable part of the credit on Form 1040 or 1040-SR, line 29.”
For the lifetime learning credit: “You claim the lifetime learning credit by completing Form 8863 and submitting it with your Form 1040 or 1040-SR.” “Enter the credit on Schedule 3 (Form 1040), line 3.” For the rules that decide which credit and how much, see the education credits page and the Form 1040 page. The publication also notes that to claim the first of those credits “you must provide the educational institution’s EIN on your Form 8863.” The school’s identifying details are printed on the form.
If you did not get a form
A missing form does not always end the discussion. The publication says: “To be eligible to claim the American opportunity credit or lifetime learning credit, the law requires a taxpayer (or a dependent) to have received Form 1098-T from an eligible educational institution, whether domestic or foreign.” It then lists exceptions, for example where the school “isn’t required to furnish a Form 1098-T to the student under existing rules”. If a form was required and has not arrived, the publication describes steps to take. After February 2, 2026 (January 31 falls on a Saturday), but before you file your 2025 tax return, “you or the student must request that the educational institution furnish Form 1098-T.” The publication adds that you must fully cooperate with the school’s efforts to gather the information needed to furnish the form. Read the full passage in Publication 970 before relying on any of these exceptions.
Edition and box numbers
The primary read for this page is the 2025 edition of Form 1098-T with its instructions for the student, 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. Comparing the two, the box 1 wording differs only in the year. The 2026 student copy reads “Shows the total payments received by an eligible educational institution in 2026 from any source for qualified tuition and related expenses less any reimbursements or refunds made during 2026 that relate to those payments received during 2026.” The box 1 filer instructions read the same in both editions. 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
- Treating box 1 as the amount you paid. Publication 970 says “the amount on Form 1098-T might be different from the amount you actually paid and are deemed to have paid”.
- Assuming box 1 already nets out scholarships. The instructions say “The amount reported is not reduced by scholarships and grants reported in box 5.”
- Counting room and board because it appeared on the school bill. The instructions list “Charges and fees for room, board, insurance, medical expenses (including student health fees), transportation, and similar personal, living, or family expenses.” among items that are not qualified.
Related: Form 1098-T, education credits, Form 1040, and 529 state tax benefits.
Sources
- Form 1098-T (2025) with Instructions for Student: IRS archived PDF (irs.gov)
- Form 1098-T (2026) with Instructions for Student: https://www.irs.gov/pub/irs-pdf/f1098t.pdf
- Instructions for Forms 1098-E and 1098-T (2025): IRS archived PDF (irs.gov)
- Publication 970, Tax Benefits for Education (for 2025 returns): https://www.irs.gov/pub/irs-pdf/p970.pdf
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.