Do amounts "billed" for qualifying expenses qualify for an education credit ?

[rjs · Accepted solution]

No, amounts billed do not qualify for an education credit. You can only claim an education credit for expenses that you actually paid in the year that you are filing for.

If you have a Form 1098-T that shows "amounts billed" in box 2, that is an obsolete form that cannot be used for 2018 and later. The school is required to report the amount of tuition paid in box 1. Box 2 is not used for 2018 and later, and should be blank. If your 1098-T has amounts in both box 1 and box 2, enter the box 1 amount in TurboTax and ignore box 2.  If the school put an amount in box 2 and left box 1 blank, they filled out the 1098-T incorrectly. You have to contact the school and get a corrected Form 1098-T.