Can I claim my daughter's college tuition for 2022 if I paid part of it in 2023?

[herrerasinhawaii]

My tuition payment was late.

[BrittanyS]

Can you clarify if you received a 1098-T?

[Hal_Al]

Q. Can I claim my daughter's college tuition for 2022 if I paid part of it in 2023?

A. Technically, No. 

To claim an education credit, for 2022, you may only count money paid in 2022 for 2022  expenses.  The one exception doesn't apply in your case: you are allowed to claim tuition paid, in 2022, for the first term in 2023. 

[herrerasinhawaii]

My daughter did receive one.

[MichaelG81]

No, if she received a 1098T you report as is, unless like Hal_Al stated, if it was paid in 2023 for the first term in 2023 it may be allowed for 2022 tax year, and you would have to deduct it from next years 1098T. Not for late payments due in 2022. Only then can you claim 2023 expenses on your 2022 tax return. But ‌tuition paid in 2023 should reflect on next years 1098T if tuition received in 2023. You may only include amounts paid in 2023 for an academic period beginning January–March 2023.

@herrerasinhawaii 

[herrerasinhawaii]

Do we deduct Veterans Affairs payment from the 1098T?   The VA payment was paid directly to my daughter in 2022, but the remaining 2022 tuition balance was not paid until January 2023.   How does this work?  

[Hal_Al]

Q. Do we deduct Veterans Affairs payment from the 1098T?   

A. Yes. Tuition covered by VA benefits is not "deductible" .  That is you may not claim the tuition credit if you received VA benefits for the tuition, whether paid to you or to the school (whether included in box 5 of the 1098-T or not).

Q. The VA payment was paid directly to my daughter in 2022, but the remaining 2022 tuition balance was not paid until January 2023.   How does this work?  

A. The mismatched payment does not changes anything.  You still can't claim the credit. 

[herrerasinhawaii]

So the credit will be claimed in 2023, the year it was actually paid?

[Hal_Al]

Q. So the credit will be claimed in 2023, the year it was actually paid?

A. No. You cannot claim a credit, at all, because the tuition was paid by tax free VA benefits. The fact that you received the VA benefit in 2022 and paid the tuition in 2023 does not change the fact that the tuition was paid by tax fee benefits, and not out of pocket.

[herrerasinhawaii]

I understand, so I will only be able to claim any out of pocket tuition expenses that were not paid by tax free benefits?

[Hal_Al]

Q. So I will only be able to claim any out of pocket tuition expenses that were not paid by tax free benefits?

A.  Yes.  But, even that is a little "fuzzy''.  In addition to paid tuition, VA benefits usually include a tax free stipend for living expenses.  If the recipient has no other source of funds, the other educational expenses (books etc) could also be considered as paid by tax free benefits. 

[herrerasinhawaii]

No living stipend was added, this was Dependent Educational Assistance, not the Post 9/11 GI Bill.  

[Hal_Al]

Q. So I will only be able to claim any out of pocket tuition expenses that were not paid by tax free benefits? No living stipend was added,

A.  Yes

[DBS23]

If I was a full-time college student from Jan-Mar 2023 and paid my tuition for 2023 on October 1st, 2022, can I prorate my tuition paid for 2023 so I can qualify for the American opportunity tax credit on my 2023 taxes?

[Hal_Al]

Q. I paid  my Jan-Mar 2023 tuition on 10-1-2022. Can I prorate my tuition paid for 2023 so I can qualify for the American opportunity tax credit on my 2023 taxes?

A. No. Money paid in 2022 can only be claimed on a 2022 tax return, even if the course work was in the first quarter of 2023. 

Q. If I was a full-time college student from Jan-Mar 2023 and paid my tuition for 2023 on October 1, 2023.  Can I still claim my tuition paid for 2023, so I can qualify for the American opportunity tax credit on my 2023 taxes?

A. Yes. Even though it was paid late, it was paid in the same year as the course work, so it counts for a 2023 credit.