1098T 2017

[htorres1206]

So currently ive been dealing with the IRS about my taxes currently for the year of 2017 their saying that box 2 "The amount in box 2 of your form 1098t (amounts billed) may not be used as substantiation for the Education Credits. Eligible amounts  should appear in box 1 of form 1098t (payments received) or be verified by similar documentation. Please provide us with documentation showing the amount of education expenses you paid and we will adjust your account accordingly. " From my understanding ive looked up about box 1 and box 2 being used.  So far I've found that after 2018 box 2 isn't being used anymore and that box 1 is being used now, ive looked at my previous 2014- 2017 1098t that box 2 is being used and not box 1. So my question is , was box 1 ever before 2018 used cause none of my 1098t years 2014-2017 have an amount on box 1 cause mine don't,  2018-2019 are using box 1 now but not box 2.  The IRS is asking for an amount on box 1 for 2017 when it wasn't used. What should i do or can do ? Mind you i didn't get any help i paid for my schooling with a payment plan.

[Critter-3]

Easy fix ... answer the letter with the information they are requesting.   Prove you paid the amount of expenses you listed on your return by sending them proof of payment ... cancelled checks or payment receipts ... something legit looking. Send copies asap. 

[Carl]

For tax year 2017 and before box 2 was used for the amount billed in the tax year, and box 1 was used for the amount paid *in the same tax year*. your issue can and will occur if you paid the amount billed *AFTER* the 1098-T was issued. So all you need to do is provide the IRS with proof that you paid the amount billed, and that you paid it in 2017. Things like cancelled checks and bank statements will suffice. It really is that simple.

[Hal_Al]

It was about 2017 when the  IRS has began cracking down on schools that send out a 1098-T with box 1 blank. They were not always accepting an amount in box 2, of a 1098-T, as proof that you paid tuition. There was no additional proof required at the time you filed your return. The IRS wants the proof , now, after the fact. TurboTax did nothing wrong.  There was nothing you could do to prevent this. This is a failure of the tax system. The school could have done a better job with the 1098-T, but even that statement is an oversimplification. 

You only need to prove you actually paid tuition, with school statements and cancelled checks and/or bank or credit card statements.  School billing statements, showing  qualified expenses and your payments credited to the account is usually best.