Dropped one class since the university mailed me the 1098-T. What to do?

[thomas2]

I signed up and paid for three university classes. I needed them to improve my professional skills. The university mailed me a 1098-T. Since I've dropped one class and received a refund.

When I enter the 1098-T, do I enter what's on the form?

Or should I enter what the form would be if it were corrected for the class that was refunded?

I don't want to falsify records by entering something that's not on the form. But I also don't want to report something wrong.

[IsabellaG · Accepted solution]

The easiest way to handle this is to only claim the amount that you paid that wasn't refunded. Otherwise, you'd have to report your refund as income if you received in in 2018 and you claimed a credit for the class in 2017.

When you enter the amounts from your 1098-T, click the link What if this is not what I paid to this school? and enter the amount you actually paid in the drop-down that appears.

[Xiao379]

Hi,

I paid for two classes (one started in Jan, 2021, one started in April, 2021)' tuition in 2020 and got the 1098-T from my school. I dropped the class started in April, 2021. The school is mailing me a check for the refund. But I have not received the check yet.

Will the school mail me another1098-T for 2021 showing the refund amount? If yes, is it better to claim the credit for 2020, then claim the income for 2021?  That way shows I follow the 1098-T amount in corresponding year? If not, since I have not filed my 2020 tax return yet, should I wait for the check the come and then deduct the refund amount from the 2020 1098-T?

Please advise. Thanks!

[DaveF1006]

Yes, you can claim the credit for 2020 and then report the refund in 2021. You should get a 1098T that will reflect the refund amount that you will report on your 2021 tax return.