Incorrect 1098-T 2021 form: Tution paid for 2022

[pgere18]

Hi everyone,

I am in a bit of a quarrel with the payment department of my school. They issued me a 1098-T Tax statement which I believe to be incorrect. However, I cannot seem to get them to understand that.
Here is the situation. I started attending University in the fall semester of 2021, paid for that semester in August 2021. I also paid for my spring 2022 semester in November 2021. Both payments were about $5880 each (total $11760).
Now the 1098-T tax statement states only $5880 in box 1. Which, in itself, is not a big deal even though I believe that to be wrong too. If I made the payment in 2021, it should reflect both payments on there, am I right?
What bothers me more though is the fact that they checked box 7 which indicates that "the amount in box 1 includes amounts for an academic period beginning in January-March 2022".

Now please correct me if I am wrong, but that would mean they reported the payment I made for my spring semester (which started this January) in box 1?
Ironically, they explained to me in an email, that they can only report payments made for tuition in 2021, which makes it even more questionable why they checked box 7. So either they forgot about the payment I made in August for the fall semester, or they should not have checked box 7

ALSO: I realize I can still file for the education credit even if the amount on my 1098-T is incorrect...I don't care whether I can a corrected form or not...I just want to understand the problem my school has...

Thanks! I hope someone can help me out here.

[MayaD]

From the information that you provided, your 1098-T is correct.  

Per IRS

Box 1:Enter the total amount of payments received for qualified tuition and related expenses from all sources during the calendar year. 

All the amount that was paid in 2021 must be included in box 1 even if it was a tuition for spring of 2022. You made a payment in August 2021 and one in November 2021 so the total $5880 (as you mentioned ) should be reported in box 1.

Box 7: Check this box if any payments received for qualified tuition and related expenses reported for 2021 relate to an academic period that begins in January through March of 2022

[pgere18]

Sorry, I might not have been clear. Both payments I made (in august and November) were 5880 each! so a total of 11760

thank you for your reply!

[Hal_Al]

 The 1098-T is only an informational document. The numbers on it are not required to be entered onto your tax return. However receipt of a 1098-T frequently means you are either eligible for a tuition credit or deduction or possibly your student has taxable scholarship income. 

If you claim the tuition credit, you do need to report that you got one or that you qualify for an exception (the TurboTax interview will handle this)

You claim the tuition credit, or report scholarship income, based on your own financial records, not the 1098-T. In the 1098-T screen, click on the link "What if this is not what I paid the school" underneath box 1. You will then be able to enter the actual amounts paid. You will also reach a screen that allows you to adjust the scholarship amount for "amounts not awarded for 2020 expenses".

Or if you find it easier, just change the numbers in boxes 1& 5 to what your records show. The 1098-T that you enter in TT is not sent to the IRS.

[pgere18]

Thanks! I know that - as I said in my original post, this is not about how I am going to file it, it is about whether my school did a mistake on the form or not. Thanks though, I appreciate your reply!

[Hal_Al]

No, they didn't make a mistake.  That's just their understanding of how it should be done (which is wrong).  But, it doesn't matter whether they made a mistake.  You're not going to get them to correct it.  There are a kazillion posts, in this forum, from frustrated parents who tried.  I vaguely remember one parent succeeding.  You just have to deal with it.  It's so common, that TT has adjusted the input screens to accommodate (that took arm twisting too).

There used to be a box 2, on the 1098-T, for amount billed.  But the IRS eliminated that.

[rlormor]

"Or if you find it easier, just change the numbers in boxes 1& 5 to what your records show. The 1098-T that you enter in TT is not sent to the IRS."

----------------

Actually, this answer came up in Google from a TurboTax page (I Googled, "does the IRS receive form 1098-T?):

Answer:

Eligible post-secondary institutions are required to send Form 1098-T to tuition-paying students by January 31 and file a copy with the IRS by February 28.

[Hal_Al]

Yes, the school must send a copy of the actual 1098-T to the IRS.

But, the modified 1098-T that you enter, in TurboTax, is not send  to the IRS.  Only the resultant calculations are sent  (the credit you claim or the taxable scholarship you report).  Essentially, the 1098-T is just an entry device.