Filing Form 1098-T or any other tax form requires accurate information. An error in the form can lead to unnecessary complications and can trigger corrected forms, student questions, or an IRS notice. These mistakes may also trigger information return penalties under IRS rules.<\/p>\n
A quick pre-filing review to check whether the institution or insurer is required to file Form 1098-T for a student can help institutions catch mistakes early.<\/p>\n
Institutions should also maintain records of the student’s name and TIN, qualified tuition payments and adjustments, scholarships and grants, enrollment status, and all applicable filing and statement deadlines.<\/p>\n
Form 1098-T reporting responsibilities are mainly handled by eligible educational institutions and certain insurers, including:<\/strong><\/p>\n Note: A third party can also file on behalf of the institution if they collect tuition payments. However, if they don\u2019t have the student\u2019s information, the filing obligation returns to the institution.<\/p>\n Form 1098-T filing mistakes can be traced back to a few recurring problem areas, involving Form 1098-T Box 1 error reporting, TIN matching errors, or prior-year adjustments.<\/p>\n Each of these mistakes is preventable with a quick pre-filing review. Catching them early keeps corrected Form 1098-T volume low and protects the accuracy of a student’s education credit records.<\/p>\n Sometimes an error may be caught only after filing Form 1098-T with the IRS. The institution must then follow the correction procedure that applies.<\/p>\n A filer may need to submit a corrected Form 1098-T for errors involving:<\/p>\n Each of these ties back to a specific box on the form. The IRS requires paper filers to correct errors in Form 1098-T based on the error types. Type 1 covers incorrect amounts, codes, or checkboxes, as well as a return filed by mistake. Type 2 covers a missing or incorrect TIN, an incorrect name, or the wrong form type. Each type follows its own correction steps.<\/p>\n A Type 1 correction needs a new Form 1098-T with the correct information, \u201cCORRECTED\u201d box checked, and must include the appropriate correction indicator or corrected fields as required.<\/p>\n A Type 2 correction requires two filings: first, a form that identifies the previously filed return and indicates that the original information was incorrect; and second, a new form containing the correct information.<\/p>\n For electronic corrections, the institution must follow the applicable IRIS correction procedures.<\/p>\n *Note- The deadline has moved to the next business day, since the original deadlines, January 31 and February 28, 2027, fall on weekends.<\/p>\n 1099Online gives educational institutions and other Form 1098-T filers a guided workflow to prepare, review, and eFile returns.<\/p>\n Form 1098-T Box 1 reports the qualified tuition and related expense payments an institution received during the year.<\/p>\n No, scholarships and grants are reported separately in Box 5 and do not lower the Box 1 amount.<\/p>\n Late or incorrect Form 1098-T filings can result in information-return penalties. Filing a corrected Form 1098-T as soon as an error is found can help limit penalty exposure.<\/p>\n Electronic filing generally applies once a filer reaches 10 information returns in total for the year. This 10-return threshold applies to all form types, not just Forms 1098-T.<\/p>\n A pre-filing review of all the student records can help filers meet 1098-T filing requirements before forms are filed. This step can catch a 1098-T TIN error, a 1098-T Box 1 error, or other incorrect 1098-T entries early.<\/p>\n\n
Understanding Where Form 1098-T Filing Mistakes Starts<\/h2>\n
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\n Filing Mistake<\/th>\n Why It Matters<\/th>\n What should the filer do?<\/th>\n<\/tr>\n \n Incorrect or missing student TIN<\/td>\n Can trigger IRS matching problems and increase the risk of a penalty.<\/td>\n Collect the student’s TIN using Form W-9S or another approved method.<\/td>\n<\/tr>\n \n Reporting billed tuition instead of payments received<\/td>\n Box 1 reports payments received, not amounts billed.<\/td>\n Reconcile actual payments received during the calendar year.<\/td>\n<\/tr>\n \n Including nonqualified expenses in Box 1<\/td>\n Overstates qualified tuition and related expenses.<\/td>\n Leave out personal and living expenses, such as room, board, and transportation.<\/td>\n<\/tr>\n \n Reducing Box 1 by scholarships<\/td>\n Box 1 and Box 5 are reported separately.<\/td>\n Report payments in Box 1 and scholarships or grants in Box 5.<\/td>\n<\/tr>\n \n Misreporting refunds<\/td>\n Reporting depends on the year the related payment was reported.<\/td>\n Reduce Box 1 for applicable same-year refunds and use Box 4 for qualifying prior-year adjustments.<\/td>\n<\/tr>\n \n Incorrect Box 5 amount<\/td>\n Scholarship and grant amounts can affect a student’s education credit.<\/td>\n Reconcile the scholarships and grants that the institution administered and processed.<\/td>\n<\/tr>\n \n Ignoring prior-year adjustments<\/td>\n Boxes 4 and 6 exist to capture qualifying prior-year changes.<\/td>\n Report tuition adjustments in Box 4 and qualifying scholarship or grant reductions in Box 6.<\/td>\n<\/tr>\n \n Incorrect Box 7 selection<\/td>\n Shows whether Box 1 payments cover an academic period starting in early 2027.<\/td>\n Check Box 7 only when Box 1 payments are for the academic period beginning January\u2013March 2027.<\/td>\n<\/tr>\n \n Incorrect half-time or graduate status<\/td>\n Boxes 8 and 9 report enrollment details tied to education credit eligibility.<\/td>\n Confirm the enrollment records before filing.<\/td>\n<\/tr>\n \n Filing for an exempt student or transaction<\/td>\n Form 1098-T may not be required.<\/td>\n Review the Form 1098-T filing exceptions before submitting.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n How to Correct Form 1098-T Filing Mistakes<\/h2>\n
When a Correction May Be Required<\/h4>\n
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Form 1098-T Correction Procedure for Electronic Filers<\/h4>\n
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Form 1098-T Filing Deadlines for the 2027 Filing Season<\/h2>\n
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\n Filing Requirement<\/th>\n Deadline<\/th>\n<\/tr>\n \n Furnish Form 1098-T to students<\/td>\n February 1, 2027*<\/td>\n<\/tr>\n \n Paper file Form 1098-T with the IRS<\/td>\n March 1, 2027*<\/td>\n<\/tr>\n \n Electronically file Form 1098-T with the IRS<\/td>\n March 31, 2027<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Examples of Form 1098-T Reporting<\/h2>\n
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\n Scenario<\/th>\n Is Reporting Required?<\/th>\n<\/tr>\n \n The institution receives payment in 2026 for tuition owed from an earlier year.<\/td>\n Report the payment in Box 1 if the institution has already billed the student for that amount.<\/td>\n<\/tr>\n \n The institution issues a 2026 refund tied to the tuition it reported in a prior year.<\/td>\n Report the refund in Box 4 instead of subtracting it from the current year’s Box 1 amount.<\/td>\n<\/tr>\n \n The institution administers and processes a grant for a student during the year.<\/td>\n Report the grant or scholarship amount in Box 5.<\/td>\n<\/tr>\n \n A scholarship reported by the institution in a prior year was reduced in 2026.<\/td>\n Report the reduction amount in Box 6.<\/td>\n<\/tr>\n \n The institution receives a December 2026 payment for a term starting in February 2027.<\/td>\n Report the payment in Box 1 and mark Box 7 to flag the upcoming term.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n How 1099Online Can Help Reduce Form 1098-T Filing Errors<\/h2>\n
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FAQs<\/h2>\n
1. Does Form 1098-T report tuition billed or tuition paid?<\/h5>\n
2. Can scholarships reduce the amount reported in Form 1098-T Box 1?<\/h5>\n
3. What happens if Form 1098-T is filed late or incorrectly?<\/h5>\n
4. When must Form 1098-T be filed electronically?<\/h5>\n
5. How can filers catch Form 1098-T filing mistakes before submission?<\/h5>\n