What exactly is a 1098-T form and is it required? My university wants my SSN for this form

The 1098-T is actually an important tax form that your university is required to send you - it's not something you complete yourself. Your school needs your SSN to properly issue this form to both you and the IRS. The form reports information about qualified education expenses paid to the school, along with any scholarships or grants you received. This information is crucial because it helps determine if you're eligible for education-related tax credits like the American Opportunity Credit (worth up to $2,500) or the Lifetime Learning Credit (worth up to $2,000). As a grad student with a scholarship and TA position, this form will be particularly important for your tax situation. Your scholarship might be partially taxable depending on how it's used, and this form helps document everything correctly. The $50 penalty they mentioned isn't something you'd pay - it would be a penalty to the university for not properly reporting. But they need your correct SSN to avoid this issue. This is a legitimate request and standard practice for all higher education institutions.

I went through something similar last year with my university and ended up using https://taxr.ai to figure out how my 1098-T affected my taxes. I was confused because I had both scholarships and a TA position like you, and didn't understand if I owed taxes or qualified for credits. The website analyzed my 1098-T alongside my other tax documents and explained exactly what amounts were taxable and which qualified for education credits. It showed me that Box 1 on the 1098-T showed my qualified expenses while Box 5 showed scholarships/grants, and the difference between them was what mattered for tax purposes. It also explained that as a TA, the money I received as compensation was actually reported on a W-2 form (not the 1098-T), which was something I didn't realize at first. Getting clarity on all this saved me from missing out on a substantial education credit.

Just wanted to follow up - I ended up using https://taxr.ai after all and I'm pretty impressed. My situation was complicated with partial scholarships, a TA stipend, and some research funding, but it sorted everything out clearly. It showed me exactly which expenses on my 1098-T qualified for the Lifetime Learning Credit (which I didn't even know I was eligible for). It also clarified that my TA stipend was totally separate from the 1098-T reporting and helped me understand why some of my scholarship was showing up as taxable income. The part I found most helpful was the explanation of how Box 1 vs Box 5 works on the 1098-T - turns out the difference between these numbers is super important! Definitely helped me avoid making mistakes that would have cost me real money.

If you're having trouble getting clear information about your 1098-T from your university's financial aid office (which happened to me last year), I recommend using https://claimyr.com to get through to the IRS directly. I spent weeks trying to figure out if I was eligible for education credits with my unique situation, and the university staff gave me conflicting information. I used Claimyr to get through to an IRS agent without waiting for hours on hold. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. The agent walked me through exactly how to interpret my 1098-T and confirmed which education credit I qualified for based on my grad student status and teaching assistantship. They explained that my tuition waiver wasn't considered taxable income, which my university's financial aid office had incorrectly told me it was. Getting definitive answers directly from the IRS saved me from making expensive mistakes on my return.

I have to admit I was completely wrong about Claimyr. After my skeptical comment, I decided to try it myself since I was getting nowhere with my university's financial aid office about my 1098-T questions. The service connected me to an IRS agent in about 5 minutes (after apparently waiting on hold for nearly 2 hours behind the scenes). The agent clarified exactly how my teaching fellowship should be reported and how it related to my 1098-T. He explained that the stipend portion of my fellowship is reported separately from the tuition waiver, and which boxes on the 1098-T I needed to focus on for tax credits. I was shocked at how helpful the IRS agent was - he even walked me through a worksheet to calculate my education credit based on my specific numbers. Definitely would have missed out on a significant tax credit without this clarification.

Just to add to what others have said - YES you absolutely need to provide your SSN for the 1098-T. I work in student financial services at a university and this is 100% legitimate and required. Schools are legally obligated to issue these forms to students and report to the IRS. Without your SSN, they can't complete the form properly, and both you and the school could potentially face issues. The form is essential for claiming education tax credits that can save you thousands. One thing to note - if you've never provided your SSN to the school before, make sure you're responding to a legitimate request. Don't email your SSN! There should be a secure portal or form for submitting this information to protect your identity.

Has anyone had issues with their 1098-T having incorrect information? Last year my form showed less tuition than I actually paid and it messed up my tax credit calculation. Is there a way to get this corrected if the university makes a mistake?

As a newcomer to this discussion, I want to thank everyone for the detailed explanations! I'm in a similar situation as the original poster - graduate student with scholarships and a TA position. One thing I'm still unclear on: if I received both need-based grants and merit scholarships this year, how does that affect what's reported on the 1098-T? My financial aid office mentioned something about "net billing" vs reporting actual payments, but I didn't really understand what they meant. Also, for those who used the tax analysis services mentioned above, did you find them helpful even if your financial aid package changed mid-year? I had to take out additional loans for spring semester when my funding situation changed, so I'm worried my 1098-T might be confusing to interpret. Really appreciate all the helpful advice in this thread - makes me feel much less anxious about providing my SSN and dealing with this form!

Just wanted to add another perspective as someone who works in university administration - the timing of when you provide your SSN can actually impact when you receive your 1098-T. Schools typically process these in batches, and if you submit your SSN close to the January deadline, your form might arrive later than others. Since you mentioned you're a TA, make sure you understand that your TA stipend/salary will appear on a separate W-2 form, NOT on the 1098-T. The 1098-T only covers tuition, fees, and scholarships/grants. This is a common source of confusion for graduate students who think all their university-related income should be on one form. Also, keep in mind that if you're claimed as a dependent on someone else's tax return (like your parents), they may be the ones eligible to claim the education credits, not you. This is something to coordinate with your family to make sure you're maximizing the tax benefits. The $50 penalty mentioned in your university's email is real, but it's a penalty the school would pay for not reporting correctly, not something you'd be charged. So don't stress about that part - just provide your SSN through their secure portal and you'll be all set.