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Level 1

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?

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?

7 Replies
Level 8

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).”

CLICK HERE for IRS Pub 970 Education Credits

Level 1

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?

Thank you! So everything we paid for during and for only 2017 school year and not 2018 is not indicated on the 1097t box 1 payments received but we have proof. So we can still enter the amts right? One for tuition and 1 for books?
Level 8

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?

Yes, that is correct. Box 1 is what was paid, but some schools report Box 2 INSTEAD which is what was billed. If you paid in 2017, claim it.
Level 8

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?

Also, remember that if the school billed in 2017 for classes that started in 2018 and you paid for, or will pay for, the classes in 2018, you may need to adjust numbers next year on your 2018 tax return. Keep good records with your tax file.
Level 1

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?

Got it. Thk u
Level 1

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?

I entered tuition paid out of our pocket in box 1 and box 2 amt billed from school and it says boxes 1 and 2 cant both have values. So how do i enter tuition we paid directly to school and book expenses?
Level 8

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?

enter the 1098-T as the school reports it. (looks like your school reported Box 2) Next use the link "What if this is not what I paid?" located under Box 2 on the 1098-T screen and enter what was paid. In your situation, only report Box 2 and then use the link.