1098-T

[T2018]

I received a 1098_T for tax year 2018.  Box 1 showed an amount based on billed charges and not what I paid in 2018.  Box 3 was checked.  Box 7 was not checked.  The billed charges are for Spring 2019.  I asked them to send corrected form.  The university said they would not send a corrected form.  The university said they use "billing" data in Box 1.  I thought only "paid" amounts were to be shown in Box 1.   I need to know how to handle this given I paid tution and fees in 2018.  The tuition and fees I paid in 2018 were part of a single line item charge.  I have information to breakout costs for that semester.  I can change Box 1 amount in Turbo Tax but need to make sure of the first issue about "billing " charges in Box 1. 

[MargaretL]

The IRS does allow to claim qualifying expenses for an academic period that starts during 2018 or the first three months of the next year. So you can still report them on your 2018 tax year

You are correct that box 1 should report amount paid, not billed. Since the school will not correct the form, just enter the information as it is, but make the adjustment when going through the expenses section.  If you paid more, just enter the additional amount as your expenses.  And be sure to keep all the records, especially since the form is not correct. 

[T2018]

Thank you for your response.  As a follow-up, I actually paid less tuition and fees than the amount shown in box 1.  Our child attended at least half time in 2018.  So far, I checked the link to input the correct amount for tuition and fees paid in 2018 and then input other expenses (room and board, etc).  I then printed the TurboTax forms for 1098-T and 529q and trying to determine what impact the difference has on taxes.  Under "Reconciliation of Box 1", I see a line item for the difference between correct amount and the box1 amount but not sure what it really means.  Once I understand this first issue then I have a second question.

I took a distribution from my 529 account for Spring 2019 expenses in late December 2018.  This amount is equal to the amount discussed above as given in Box 1 minus the scholarship money.  Our child is living off campus.  This distribution showed up in my 1099-Q form for 2018 along with my earlier distribution in 2018.  I paid the university in early January 2019 for Spring 2019 semester.  So I should have a distribution excess in 2018 based on what expenses I paid in 2018.  This is shown in TurboTax form for 1099-Q.  I am trying to understand how to reconcile this amount - since I took distribution in 2018 but paid university in 2019.  I probably should have waited a few days to take the distribution in 2019 and things would be cleaner.