Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
martin3909
New Member

Can amount shown on the 1098T be applied to the AmericanOpportunityTaxCredit or do I need to subtract amount fromthe prepaid tuition plan from the amount shown on 1098T

Can the total amount shown on the 1098-T form be applied to the American Opportunity Tax Credit or do I need to subtract the amount that the pre-paid tuition plan paid from the total amount shown on the 1098-T form ?

1 Reply
hbl3973
Level 8

Can amount shown on the 1098T be applied to the AmericanOpportunityTaxCredit or do I need to subtract amount fromthe prepaid tuition plan from the amount shown on 1098T

You do subtract the pre-paid tuition amount from Box 1 to find what is the maximum qualified expense outlay that qualifies for an education credit.  In most cases, you also need to subtract Box 5, too.  Refer to IRS publication 970,

for details on how the various sources of educational support interact.


Dynamic AdsDynamic Ads
Privacy Settings
v