1098-T billed amount versus what was paid in

[vileliquid1026]

Hello,

I received a 1098-T form this year and last year, as I was taking college courses. That amount that is on the forms is what the school billed me for. The majority of this amount was covered by my student loans, and I paid a fraction of the cost over the course of the year. When I chose to enter the information on the 1098-T, my refund becomes very large as it seems as though I paid a great deal out of pocket this year for college tuition, when in reality that is the amount that I was billed. What is the best way to handle this? Should I not enter the 1098-T? Should I alter to reflect what I actually paid?

Thank you for your help!

[AnnaB · Accepted solution]

You are able to include any amounts actually paid by you, or on behalf of you, during the tax year.  Student loans are considered to be paid by you, since they are required to be paid back.

On the Form 1098-T entry screen, there is a link that says What if this is not what I paid to this school?.  When you click that, a new box will appear where you can enter amounts actually paid during the year.

Please refer to the attached screenshots to see where this link is and what the new box looks like.

[vileliquid1026]

I didn't even see this answer. You guys are the best, thank you so much!

[fanfare]

Enter the actual amount paid for tuition and fees in the calendar year, not the amount billed.

That you took a loan  to make that payment doesn't change the fact that you paid it.

[fanfare]

many schools show the amount Billed (Box 2). In that case you have to go to your own records for the actual amount paid. (Box 1).
If Box 1 is filled it should match up with your records.

[fanfare]

If you are a dependent on you parent's return and under age 24, all this should be going onto your parent's tax return.

[vileliquid1026]

No, I am not a dependent, but that is good information for someone who is. Thank you for your answer, I appreciate your help.

[JanieJ]

I am guessing your 1098-T has an amount in box 2.  If such is the case, it can be considered a timing difference.

You do want to enter the 1098-T.  There should be a hyperlink, about what If I paid something different.  The 1098-T isn't necessarily exhausting in qualified education expenses.  So let's take this piecemeal.

Here is a video about how to enter it.

https://turbotax.intuit.com/tax-tools/tax-tips/College/Video--Guide-to-IRS-Form-1098-T-Tuition-State...

In respect to student loans, that is the same as paying cash (all things being equal).  It is not uncommon for what you report and what they have received to be different.  An analogy would being billed by a utility company in December and paying it in January.   The fact that you haven't paid them yet isn't an impact as long as you are obligated to pay it.  (like a credit card).  

Here is the IRS publication

https://www.irs.gov/pub/irs-pdf/p970.pdf

The long and short of it is......

1.) Enter the 1098-T

2) Should have a link that reads "What if I paid something different"

3) Student loans count as paid by you..

[vileliquid1026]

Thank you for your detailed answer, I will research this when I am home with my records. But your information helped to clear up much confusion.

[JanieJ]

anytime!

[vileliquid1026]

You were correct in assuming there was something in 'Box 2'. I went back and rechecked this information in TurboTax, but I am not finding a link that asks, "What if I paid something different?" I might be missing it, but I am trying to be thorough, of course.

[AnnaB]

@vileliquid1026 Please see my answer above (the recommended answer) for screenshots of where the link is and what the additional box looks like.

[Dan7865]

I received a 1098-T for tax year 2016. I paid (cash) the amount in 2017. Do I claim it in 2016 taxes or 2017?