I attended one school in 2018, and paid tuition for and received 1098-T for a new school starting the spring semester?

[lestynak]

In 2018, i was completing a 2year degree (associates') and received my AS in December.
I was already enrolled for classes at a university for the spring semester of 2019. In November of 2018, my grandfather paid my tuition expenses for the spring semester.
He does not claim me on his taxes.

I received the 1098-T with box 1 filled in with received payments, nothing in box 2, and box 7 is checked. It also says I am not at least a half time student, even though I am.

Since i technically hadn't yet attended this college at the time of payment, i wasn't the one who paid the tuition, and box 2 has nothing in it.... can I still claim this tuition on my taxes?

[MichaelMc · Accepted solution]

From the facts and circumstances you have described, I believe you are eligible for the Lifetime Learning Credit.

You are allowed to claim on your 2018 income tax return, payments made in 2018 for tuition and fees for courses beginning within the first three months of 2019. The fact that your very generous grandfather paid your spring semester expenses has no effect on your tax return. His generosity was a gift to you, without tax consequences, although it was paid to the university on your behalf.

With respect to the Form 1098-T, there is nothing wrong with having the payment recorded in Box 1 and nothing in Box 2. If you can convince the university bursar's office that the "at least half-time" box should have been checked and get them to issue a corrected form, I see no reason why you should not qualify for the slightly more generous American Opportunity Tax Credit. Please follow the imbedded link to learn more about both tax credits.