Schools are not required to report Box 1 "Amount Received by the school"
only Box 2 "Amount Billed by the school"
Education Credits are based on when you paid the education expense.
You need to claim the fees you paid in 2016.
Use the 1098-T as a guide, but only that.
Additionally, schools often bill in December for classes that start the next year, so it can be confusing.
Regardless, use the amount you really paid in 2016.
Include any scholarships and/or other financial aid and loans you may have received which was paid to the school as having been paid by you. If you report any scholarships, the tax-free financial aid amount will be off-set by what you paid to the school.
Be sure to keep a copy of records that prove the payments were made.
The student's school account usually shows all the activity and when it was posted.
The American Opportunity Credit is available 4 years. A four year degree usually spans 5 years. You should keep this in mind and decide, if this is going to happen, should you claim the first year as one of the 4, or the last year. There is also the Lifetime Learning credit that might be an option for the 5th year if there is one.
When a school bills in December for classes that start in January, February, or March of the next year, you can pay the fee in December and claim it in that year, or wait and pay it the following year. You can only claim the payment in the year you pay it.
In TurboTax:
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Enter the information from the1098-T.
- When you get to Box 2, enter what is on the 1098-T, but click on "What if this is not what (your name) paid to the school?"
- Here is where you enter the tuition and fees you paid to the school in 2016.
Make sure you have a record of the payment, school records are adequate.
Next year the schools need to report box 1 "What the school received" which should make things easier.
