The 1098-T is used to claim tax credits for the AOTC or LLC. You don't file it with your return but use it to fill out Form 8863 which is attached to your 1040. The info goes on the parent's return when claiming a dependent.
Qualified expenses for the AOTC/LLC are very picky, you can't claim room and board expenses. The 1098-T expenses do qualify.
The 1098-T Box 1 payments in my case did not always line up perfectly with the intended Academic calendar year. You can make a payment in Dec 2025 for 2026 tuition and have it be counted for tax year 2026 AOTC credits. Turbotax allowed for this adjustment during the interview if Box 1 did not align with the intended calendar year.
