Reviewing my 2022 return (Deluxe desktop) to prepare for 23 return, noticed that amounts I entered for kids' 1098T are blank, but the school info is still there. Why?

[girishapte]

[Goal was to see how I answered all the questions regarding 1098T last year to help with this year's 1098T questions.

[JotikaT2]

Generally, information related to tuition can vary from year to year.  This in turn affects the type of education credit that can be claimed on your tax return.  

The credits can also vary depending upon how many years the education credit was claimed.  For example, the American Opportunity credit only applies for the first 4 years of college while studying to get a degree.  The Lifetime Learning Credit has no limit on the number of years it can be claimed.  

Therefore, while the institution information may remain, the remaining information is cleared so you can provide the most recent information applicable to the latest tax year for each child. This helps to ensure you are given the credit that is allowable and applicable to your tax return based upon current information.  

Please see this link as well for additional information on qualified education expenses that can also be claimed on your tax return in order to compute the applicable education credit.

[girishapte]

My question is not tax-related; it is product-related: Why did some information (Box 1 and 5 amounts) in 2022 1098-T not get saved in Deluxe desktop whereas school information (name, address, filer's federal id) was saved?

If someone viewing my question used 2022 Deluxe desktop AND included a 1098-T for a dependant, would appreciate if you would open the desktop app and see if the amounts of the 1098-T are present.

[Hal_Al]

The amounts in boxes 1 & 2, from 2022, do not transfer to the 2023 software.  The assumption is that new amounts will be entered for 2023.  

[girishapte]

I guess I wasnt clear: When I open my 2022 desktop app and walk through my 22 return in interview mode, the amounts i entered last year from the 1098-T are no longer present whereas the school information is present.

I am hoping someone with 2022 desktop version who also entered 1098-T will re-open their 2022 completed return and look in "Deductions&Credits" section to see if 1098-T amounts have been saved or are blank.

[Hal_Al]

Yes, I have done that and mine were saved. 

[girishapte]

Thanks for confirming (though the "_AI" suffix in your username makes me wonder whether your reply is an AI hallucination 🤔😉).

Am wondering why amounts are not saved in my software.  Also, the 2023 desktop app did not seem to recognize (from importing my 2022 taxfile at start of my new 2023 return) that I had any 1098-T forms last year; I had to manually tell the interview that I have 1098-T forms.

If 1098-T info had been correctly saved in 2022 (as it seems to have been for you), is the 2023 desktop app supposed to import anything for your 2023 return from 2022 1098-T saved data?

[DawnC]

Not in the 2023 return, see the help article below.   If you have education credits on your 2022 return (Form 8863), and you are using the 2022 software, the information from any 1098-T used to calculate that credit should be there.   If the 1098-T information wasn't used, it would have been removed from the return.  

When you are preparing the 2023 return, and you transfer in your 2022 tax file, only 1099 payer information (no amounts) will be seen.   Although you may see prior year amounts on summary screens throughout preparing the 2023 return.    What information transfers in from a previous year tax file when starting a new return this year?

[girishapte]

Thanks DawnC.  Would you please confirm/correct what I think you are saying:

1. If I use the 2022 software and use my 22 .tax file, I should be able to see all the 1098-T info I entered when I prepared my 22 return.

2. If I import the 22 .tax file into the 2023 software to get a head start on my 23 return, none of the 1098-T information will be imported (not even that there were 1098-T forms used in 22?) because no 1098-T info is saved in the .tax file.

Here is my reality:

In situation 1., I see the university information but no amounts.  Sounds like this is not expected behavior.

In situation 2., 2023 software shows nothing related to 22 1098-T forms, not even any knowledge that 22 return included 1098-T forms.  Sounds like this is expected behavior.

[DawnC · Accepted solution]

1.) only if there is an education credit on Schedule 3, Line 3.

2.) correct

Is Form 8863 part of your 2022 e-filed tax return?   If it is, the 1098-T amounts are included in the filed return.   If there is no Form 8863 (no amount on Sched 3, Line 3), there was no 1098-T data filed with your return.  You may see an empty form when viewing the return in the 2022 software.  

If you have education credits (form 8863) on your 2022 return, the 1098-T data that was used to calculate the credit has to be there.   Any 1098-T that wasn't used to calculate your education credit would not be included in your e-filed return, and that 1098-T would not transfer to next year.  

The help article references only Form 1099 (not 1098) payers information, so the 1098-T payer information doesn't automatically transfer in with the previous year tax file.    

[girishapte]

Thanks DawnC.   Based on the link you provided and your clarification, it seems that (at least for 1098-T) some information is not saved if it doesnt impact the return. I had assumed that all information the taxpayer entered during interview and via import would be saved in case an amended return was needed.

Since my 22 return did not have 8863/education credit, I will see if amending the return and re-entering the 1098T amounts changes anything.  This might determine whether the amounts are blank because they werent needed, or whether they were blank because I didnt enter them or answered 1098T interview questions incorrectly.  An additional possibility is that since my filing status is HoH, education credits are not eligible (as would be for MFS).

[AmyC]

You may have been ineligible for the credit in TY22 due to income or other factors. For TY 23, HOH can claim education credits and other circumstances may have changed. See What education tax credits are available?

Reference:

IRS Q & A about education credits