1098-T versus timing of payment

My daughter finished graduate school in 2020. She was not issued a 1098-T in 2020 because the university included the tuition amount for 2020 in her 2019 1098-T even though we did not actually pay the tuition until January 2020.

She did not claim a deduction for tuition in 2019 because she had no income. Can she claim the deduction in 2020 even though she did not receive a 1098-T? If so, how do I accomplish this in Turbo Tax?

201

Expert Alumni

Apr 6, 2021 12:23:44 PM

Yes, if you actually paid in 2020, you can claim the credit. Mark that you did not get 1098-T this year but did last year.

The IRS says in Publication 970 (2020), Tax Benefits for Education | IRS: When figuring an education credit or tuition and fees deduction, use only the amounts you paid and are deemed to have paid during the tax year for qualified education expenses.

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1098-T versus timing of payment