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Level 1
posted Apr 18, 2023 9:10:11 AM

Education expense credit

My daughter started college 8/2018. We have been getting a 1098-T every year except for 2022 year. She graduated 6/2022. I was told that the reason why was they include the charges on 2021 1098-T. However, the payments were made in 2022. Can I apply for the credit for 2022 based on the qualified tuition credits I paid in 2022 which are above the max. of $4000 which can be recorded. Of course, if you removed the 2022 payments from 2021 1098-T there was still way more than enough qualified tuition expenses to use for the 2021 credit. Thank you

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2 Replies
Employee Tax Expert
Apr 18, 2023 9:33:24 AM

Yes, payment in 2022 counts. The AOTC is only good for 4 years, you may no longer qualify for AOTC. You may qualify for Lifetime Learning Credit which is limited to tuition only and 20% of the expenditure to $10,000.

For full details, see Education Credits: Questions and Answers. This includes Q19 and education credit allowed without the 1098-T.

Level 1
Apr 18, 2023 10:10:40 AM

Thanks! that was very helpful.  While I was doing the calculations on Turbo tax I believe it said I received the credit only 3 times previously but I will go back and confirm it. Otherwise I will use the LLC