Form 1098-T and Nonresident Students: Can You Claim Education Credits?
Receiving Form 1098-T does not automatically make a nonresident student eligible for the American Opportunity or Lifetime Learning credit.
Form 1098-T is a tuition information statement from a school. It is not a promise of an education tax credit. The IRS instructions state that people filing Form 1040-NR cannot claim education credits.
Start with your tax residency
If you are a nonresident alien filing Form 1040-NR, do not claim the American Opportunity Tax Credit or Lifetime Learning Credit merely because the school issued a 1098-T. The IRS generally does not allow education credits on a 1040-NR. Federal tax residents use different rules and should review eligibility under the Form 1040 instructions.
An F-1 visa does not permanently determine residency. Check the substantial presence and student day-exclusion rules for the particular year.
What the form can still tell you
The 1098-T can help you reconcile tuition and scholarships, but the amount in a box may not equal the amount deductible, excludable, or creditable for tax. A scholarship used for required tuition can be treated differently from money used for room and board. Keep the student account, scholarship award letter, and receipts.
Some schools may not issue a 1098-T to nonresident students unless requested. The presence or absence of the form does not replace the tax rules for your income or scholarship.
Avoid a common filing error
Resident-focused software can offer an education credit even when you should be filing Form 1040-NR. Confirm the return type before accepting suggested credits. If you already claimed a credit you were not eligible for, review whether an amendment is needed.
What to do next
Determine the correct federal return first. Use 1098-T as a record, not a credit eligibility decision.
Related guides
Topics: Form 1098-T, Education credit, Form 1040-NR
Official sources
General educational information. Tax rules depend on your facts and the tax year; check current IRS instructions before filing.