1098-T Billed Tuition Expenses

[tj12321]

My 1098-T Form for 2016 has my expenses for the Spring 2017 school year added in along with my 2016 expenses for the Spring and Fall semesters. Box 7 is checked and explains that the amount in box 2 includes expenses for an academic term beginning in January 2017 (the current spring semester). I will be paying for this expense in 2017 and would like to have the tax credit for the tuition I pay to be applicable the next 2017 tax return. I think that this issue is going to royally screw me over if the tuition for the current semester isn't present on my 2017 1098-T, especially because the added cost of the current semester doesn't actually increase my 2016 return because I am already getting back the vast majority of the taxes I paid in 2016. So, in short, my question is: Will the cost of tuition for the 2017 Spring Semester still appear on my 2017 1098-T, even though it has already appeared on my 2016 1098-T? And if not, is there any way to correct this issue so that it can appear on my 2017 1098-T. Thanks in advance to anyone who lends a hand!

[AndreaG · Accepted solution]

There are specific requirements with respect to the education expenses that are used to claim the credit. One of those requirements is that you have to have paid the expenses in 2016 in order to claim these expenses on the 2016 return. 

However, the school will report information about your tuition in one of two ways. Box 1 reports the amount of tuition that the school actually received to pay for your classes. Since box 1 only reports payments the school has received, it wont include spring 2017 tuition payments because you havent paid them. 

Box 2 reports the amounts that the school billed for the classes that you took in 2016 as well as the courses for the 2017 spring semester. 

So it depends on which box they completed. If they complete box 1, this would be the amount of tuition that was paid so no additional clarification is necessary to identify your tuition expenses for the credit. 

If they complete box 2, it will represent the total amounts billed so Turbo Tax will ask you for clarification regarding what amount of tuition you actually paid in 2016.

[shahadarsh]

I have a similar situation. When I called the school they said I won't get a 1098-T next year as I will complete my school in May and total amount is mentioned in 2016 years 1098-T in box 2. I will use the "What if this is not the amount paid to school" option for this year. Will I be able to get deduction for the fees that I will be paying in 2017 when I file the return next year?

Thanks for the help in advance.

[AndreaG]

I would be happy to help. However, can you post this information as a question? It will be easier for me to help you as a result.

[shahadarsh]

Posted it here. <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/3663591">https://ttlc.intuit.com/questions/3663591</a> Thanks.

[AndreaG]

Ok. I see you already got your question addressed. That's great!

[allisonhackett20]

what if both boxes have a different amount in it?

[wabekem]

I'm trying to figure out something similar.  I have records showing payments of the actual amount paid in 2016.  However, the 1098-T is checkmarked in box 7 that it includes Jan-March and there is only an amount in box 2.  This amount is higher than what was actually paid in 2016.  I want to take the credit both years and include the actual amount paid when claiming the credit for 2016 and then the other amount actually paid when claiming the credit for 2017.  Since the 1098-T is checkmarked in box 7 that it includes Jan-March, I'm not sure how to do this.

[tj12321]

I ended up receiving a great solution to this issue through the Turbotax Answer Exchange. Whatever tax software you are using should ask you for the amount in Box 2 and then have a secondary question box pop up after you enter an amount that essentially asks "Was the amount in this box the amount you paid?" that is where you can enter the total amount which you have paid in order to exclude the amount you were billed which you haven't actually paid.

[avafiadis16]

I have a follow up question for tj12321... when I input the actual amount paid then do I input just the actual cash paid or include the loans too?

[wabekem]

From what I understand, tuition paid with student loans are eligible expenses for the American Opportunity Tax Credit, Lifetime Learning Credit or Tuition and Fee Deductions.  This is stated on pages 12, 22, and 38 of IRS Publication 970.
<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/p970.pdf">https://www.irs.gov/pub/irs-pdf/p970.pdf</a>

Hope this helps.

[adziwura]

could someone please clarify: I have the similar situation.  I received a 1098-T with tuition billed in box 2 and box 7 checked.  However, i made tuition payments in January and February 2017 for the spring 2017 semester.  I reconciled the amounts actually paid in 2016 in the worksheet for the tuition statement in turbotax.  But how can I include these January and February 2017 payments for my taxes next year in turbotax?  Will there be some way to show that i had qualified tuition expenses?  (I do not expect to get a 1098T next year because my son graduates this year.)  I would appreciate your help - thanks.

[wabekem]

adziwura - based on what I understand, you should get a 1098-T for 2017 because there will be an amount for calendar year 2017; that amount should be in box 1.  Even though your son graduates, the school should provide this form.  You might have to print it yourself from an online account.  It might be worth a call to them to see how they handle that when a student graduates as this is a common occurrence with most graduations happening after a spring semester.  Hope this helps.

[lawkauff2]

Help please!  First year claiming college tuition..rec'd 1098-T, box #1 is empty of course and not sure where they got the number for box #2 and her box #7 is only half the scholarship she rec'd.  So, in online research it says to enter box#2 exactly from form and then enter what we actually paid..I got it so far and have both bills which were paid in 2017.  So, I take the amounts we paid in 2017 and enter it....but then, the next page says "you can't claim Room and Board"  So, now,do I deduct the total R&B (which is half the amount we paid)???  This is where I'm lost---just seems the numbers on the 1098-T are off....but it's probably me--THX!

[mesquitebean]

@lawkauff2
You are posting in an already-answered thread from last year that will not show up as needing help.  You should start your own new thread at the link below so it will show up to the whole forum as needing help.

When you go to the form at the link, the first box is for a summary of your question, like a title, and is limited to 170 characters..  Lower on the form you will come to another box with plenty of room to enter details.    This is a public Internet forum, so don't post any personal info.

<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/new">https://ttlc.intuit.com/questions/new</a>