School sent 1098t box 2 filled in & box 7 checked. noticed on 2016 the acct chkd no to both of these boxes that were and still filled in. How do we enter info correctly?
Be aware that education credits are based on what was paid in the tax year. Box 2 reports what was billed. The 2017 1098-T is indicating that the school billed in December 2007 for classes that started in 2018. Compare the 1098-T with the student's school account statement and adjust for what was paid in 2017 if necessary.
if you paid for the classes in 2017, those fees are education expenses for 2017
if you paid, or will pay, for the classes in 2018, those fees are education expenses for 2018
Credits are based on what was paid in the tax year.
According to the IRS:
"Prepaid expenses. Qualified education expenses paid in 2017 for an academic period that begins in the first 3 months of 2018 can be used in figuring an education credit for 2017 only. See Academic period, earlier. For example, if you pay $2,000 in December 2017 for qualified tuition for the 2018 winter quarter that begins in January 2018, you can use that $2,000 in figuring an education credit for 2017 only (if you meet all the other requirements).
You can't use any amount you paid in 2016 or 2018 to figure the qualified education expenses you use to figure your 2017 education credit(s).”