If I received a 1098 T form from my school for 2016 but didn't start classes until 2017, how do I file this?

[ssgdaax]

I received a 1098 T form from my college for 2016, even though I didn't start classes until the Spring Semester of 2017. I haven't paid any money for classes because I was awarded a Pell Grant  that was enough to cover all my tuition and book expenses. I think what happened was that when I signed up for some classes last year, it was "billed" in December 2016, even though the payout from the Pell Grant didn't take effect until January 2017. I'm really confused about how I should be reporting this.

The 1098 T form has $1,096.00 in box 2. I was awarded a $1,937.00 Pell Grant. My total expenses (tuition and books from the school) are $1,713.00.

[KrisD · Accepted solution]

It all has to do with when you paid for the classes.

I am including a post from earlier that tries to explain the 1098-T.

In your situation, the 2016 1098-T is showing what was billed (box 2) and I am guessing nothing in what was received (box 1) If the scholarship was posted in 2017, you have nothing to report for 2016 and you should be good going forward.

IF the school posts the scholarship as received in 2016, then you would have to decide if you should apply it to the Spring 2017 classes.

IF the school does not post the scholarship on the 2016 1098-T, you need to remember that the cost for your Spring 2017 class will not be included in box 2 of the 2017 1098-T, which you will receive next year.

Please try to keep an accurate record and try to plan ahead.

https://ttlc.intuit.com/replies/5663752

[ssgdaax]

Awesome! Thank you. So should I just save the form and file it with 2017's taxes?

[KrisD]

Always good to save things that say IRS on the bottom. You will get another 1098-T in 2017 and it will have Box 1 filled in (next year they have to) but yes, save the 2016 because you will have to allocate some of your Pell Grant to the amount billed for those Spring classes.

[jnafiz]

I have same situation..on 2015 1098T tax form showing box2 with billed amount but box5 showing nothing.but that billed amount was for 2016 spring semester. And this year i got 1098 T form which is not showing 2016 spring semester billed amount but showing 2016 fall semester billed amount but box 5 showing full pall grant which used for both semester.So when i was trying to do tax file it showing i have extra income cause pall grant is more than whatever was my billed amount. What should i do now.I i did not added my 2015 1098 T form when i filled for 2015 tax return.

[KrisD]

Use your school records, enter the 1098-T as is, but under box 2 on the 1098-t screen, you can click on "What if this is not what I paid to the school" and enter what the school received (from your records). If the school billed 4,000 in 2015 and 5,000 in 2016 and the scholarship was 9,000, and it went to pay the school, Box 2 would show 5,000 and that is what you would enter (5,000) for box 2, but click the link and enter 9,000,,,,,as long as you have records showing that.