Does the 1098-T stay a semester behind?

[matthewgamarsh]

I have a question.  This is my first year using a 1098-T.  In box 2 it has my tuition for my fall 2016 and spring 2017 semester. Box 5 only has the scholarship amount for the fall semester. Also, box 7 is checked. Now, everything I have read says to reduce box 2 to only include the fall semester and add spring to my 2017 taxes (that will be done in 2018) but according to the 1098-T publication by the IRS, it says the amount for spring can be claimed for the previous year if it's credited within 3 months of the calendar year.  Can someone explain this better as to what I should do?

[Patrice · Accepted solution]

Yes, this is very normal.

The IRS instructs institutions to report either payments received (Box 1) or amounts billed for qualified tuition and related expenses (Box 2) on the 1098-T.  Depending on the Institution, they may report the billed amount (Box 2).  Therefore, payments received (Box 1) will be blank.

In TurboTax, you should enter the information from the 1098-T exactly as printed. 

[matthewgamarsh]

Thank you for your quick response.  I forgot to add one part to my question. Since box 2 and box 5 are not updated together box 5 is missing a semester of scholarships. Should I add that amount to the other scholarship/grant category or just include it in my 2017 taxes when the 1098-T shows the scholarships for sping 2017?

[wtbwillis]

I'd appreciate an answer to this question as I have the same issue.