What Do I Do With A 1098?

Got a Form 1098—like a 1098-T, 1098-E, or 1098-MA—in the mail? Don’t panic. You won’t need to attach the actual form to your tax return. Just grab the numbers from it and plug them into the right spots on your return.

A 1098 form is basically an information slip that certain organizations (think lenders, colleges, or mortgage servicers) send to both you and the IRS when you’ve paid or received money that could affect your taxes. The big ones to know are:

• 1098-T: Shows what you paid for tuition and related expenses at a college or university.
• 1098-E: Reports the student loan interest you paid during the year.
• 1098-MA: Reports any monthly mortgage assistance payments you received through federal programs.

These forms help the IRS cross-check what you report on your taxes. Say you paid $10,000 in student loan interest in 2025—that’s the kind of number your lender will send you on a 1098-E and also report to the IRS. You can use that interest to lower your taxable income or claim a credit, depending on the form.

Here’s the deal: you only need the numbers from the 1098—don’t file the actual form with your return. Just stash it with your records in case the IRS ever asks about it.

1. Figure out which 1098 you’ve got.
   • 1098-T: This one’s for education tax benefits like the American Opportunity Credit or Lifetime Learning Credit. Box 1 shows what you shelled out for tuition and required fees. Box 5 shows any scholarships or grants you received.
   • 1098-E: This reports the student loan interest you paid. Box 1 shows the total interest you paid in 2025. If you’re eligible, you can deduct up to $2,500 of that interest on your return.
   • 1098-MA: This reports mortgage assistance payments you got from federal programs like HAMP or HARP. Generally, these payments count as taxable income and need to be reported on your return.
2. Double-check who can claim the benefit.
   • If you’re a dependent, your parents have to claim any education credits or deductions on their return.
   • If you’re independent and covered your own education or student loan costs, you can claim the benefits on your return.
3. Enter the numbers on the right IRS form.
   • For mortgage interest (1098): Pop the deductible interest from Box 1 onto Schedule A (Form 1040), Line 8a. You’ll need to itemize deductions to claim this.
   • For student loan interest (1098-E): Enter the interest paid from Box 1 on Schedule 1 (Form 1040), Line 20.
   • For education credits (1098-T): Use Box 1 (tuition paid) and Box 5 (scholarships) to calculate your credit on Form 8862 (if claiming the AOTC) or Form 8863 (for LLC).
4. Run a quick comparison with your tax software or preparer. If you’re using tax software, it’ll usually ask you to enter the info from your 1098 forms. Take an extra minute to make sure the numbers match what’s on the form—this keeps you from clashing with IRS records.

Entered your 1098 numbers but didn’t see the refund change you expected? Here’s where to look:

• Missing or wrong amounts. Did you pull the figure from Box 1 (not Box 2)? Box 1 on a 1098-T shows what you paid; Box 2 shows what was billed, and those two aren’t always the same. Double-check the form and your entry.
• Scholarships topped tuition. If scholarships or grants (Box 5 on 1098-T) exceed what you paid (Box 1), the extra amount might be taxable income. Report it on Schedule 1 (Form 1040), Line 8z. That can shrink your refund—or even leave you owing money.
• Someone else claimed you as a dependent. If your parents claimed you as a dependent, they also have to claim the 1098-T and any education credits. You can’t claim them on your own return. That’s a common reason students don’t see any benefit from their 1098-T.

Stay ahead of the game with a few simple habits:

• Keep payment records. Save receipts, bank statements, or loan statements that prove you paid tuition or interest. That way, you can verify the numbers on your 1098 forms.
• Update your mailing address. Lenders and schools must mail 1098 forms by January 31 every year. If you moved, make sure they have your current address so the form doesn’t go to the wrong place.
• Review your forms early. In late January or early February, log in to your lender or school’s portal to grab your 1098 forms. Spot any errors? Contact them right away for a corrected copy.
• File for free if you qualify. If your income is below $79,000 (as of 2026), you can use IRS Free File at no cost. Many of these programs pull in your 1098 data automatically, cutting down on entry mistakes.
• Watch for refund delays. The IRS can hold up refunds for up to 3 weeks if they need to verify education credits or mortgage interest. Filed early and still waiting? Check Where’s My Refund? on IRS.gov to see what’s going on.

Bottom line: A 1098 form is just a tool—it’s not a tax bill. Use the numbers the right way, follow the steps, and you’ll dodge most of the headaches when you file your 2025 taxes.