That's a very good observation. In your case, with a Form 1098-T in hand, simply enter the amount shown in Box 1 (not Box 2). That should resolve the issue.
The reasoning is as follows. Form 1098-T, Box 1, is the amount of tuition and fees that your school received (i.e., was paid). Form 1098-T, Box 2, is the amount of tuition and fees that your school billed (i.e., for which they issued an invoice). Sometimes these numbers are exactly the same, and sometimes they are not.
However, since the various federal tax benefits, such as the American Opportunity Credit, the Lifetime Learning Credit, and the Tuition & Fees deduction, all depend on the actual dollar amount of money paid (not what was billed), we want to use the Box 1 number.
Thank you for asking this important question.
That's a very good observation. In your case, with a Form 1098-T in hand, simply enter the amount shown in Box 1 (not Box 2). That should resolve the issue.
The reasoning is as follows. Form 1098-T, Box 1, is the amount of tuition and fees that your school received (i.e., was paid). Form 1098-T, Box 2, is the amount of tuition and fees that your school billed (i.e., for which they issued an invoice). Sometimes these numbers are exactly the same, and sometimes they are not.
However, since the various federal tax benefits, such as the American Opportunity Credit, the Lifetime Learning Credit, and the Tuition & Fees deduction, all depend on the actual dollar amount of money paid (not what was billed), we want to use the Box 1 number.
Thank you for asking this important question.