Form 1098-T, which is the form the school issues, is rather confusing.
Most schools report Box 2 which is what the school BILLED in 2016.
If they fill in Box 1, that amount is what they RECEIVED in 2016.
You need to report what you paid, if you are trying to claim an education credit.
Here is where the confusion comes in-
The school can bill in December of 2016 for classes that start in January of 2017.
So, if your 2016 1098-T shows amounts billed for 2017 classes, it might not match your records.
If your 2016 1098-T does NOT show Spring 2016 classes that you paid for in 2016, but they billed in 2015, it might not match your records.
Here are some things to consider:
If you paid in 2016 for any classes that started in Spring 2017 (January, February or March), you use that on your 2016 tax return.
If you got a scholarship or other financial assistance in 2016, you can apply that to the Spring 2017 class amount even if you didn't pay it out-of-pocket, but the award did - OR NOT apply it. If your school expenses in 2016 are so large you can claim the scholarship payment and still get a full education credit in 2016, then you might want to "save" the Spring classes for 2017.
You can only get the American Opportunity Credit for 4 years, and the classes will probably span over 5, so pay - or don't pay - the Spring classes in the years it will help you the most.
(I should mention that the American Opportunity Credit, which is usually the most advantageous, is only available 4 years but there are other education credits)
Click on the link for information from the IRS:
