Prepaid Tuition 2015

[hansgt21tt]

Hi , I graduated from college in the Spring of 2016. The school required me to pay tuition in advance end of November 2015 for the period up to May 2016. 1098-Ts for 2015 and 2016 only show billed amounts ( box 2 ) with 2016 only showing a minor fee. Tuition for classes attended in 2016 and fees amount to roughly  $ 7,500. Since the tuition was prepaid in 2015 the deduction for 2016 is minimal. Is there any way to claim the deduction in 2016 ?

[KrisD · Accepted solution]

No, the IRS only lets you claim what was paid in the tax year for tuition of that year and the first three months of 2017.

If you had paid for the 2016 classes (that were billed in 2015) in 2016, you could claim the expenses on your 2016 tax year return. Since you paid in 2015, you can only use those payments in 2015.

According to the IRS:

“Prepaid expenses. Qualified education expenses paid in 2016 for an academic period that begins in the first 3 months of 2017 can be used in figuring an education credit for 2016 only. See Academic period, earlier. For example, if you pay $2,000 in December 2016 for qualified tuition for the 2017 winter quarter that begins in January 2017, you can use that $2,000 in figuring an education credit for 2016 only (if you meet all the other requirements)."

For more information, please click the link below:

CLICK HERE for IRS Pub 970 Tax Benefits for Education