Tuition for Classes in 2022 with Tuition Waiver Deduction, but Paid Partially in 2023

[taxquestions15]

Hello...I took classes in 2022, graduate level.  The total amount was around 8K.  I had a 2.5K tuition waiver due to my relative working at the college (I do not work there, so it is not an employer payment).

I had a payment plan and made two payments totalling around 2K in 2022.  The other 3.5K has been paid this year, 2023.  The courses were all taken in 2022, completed. 

Do I put it all in, and say that we had 8K, with a reduction of 2.5K, and paid 5.5K since it all happened in 2022?  The school said that we could do that, or we could book the 3.5K in 2023's tax filing next year.

We are hoping someone here knows what to do.  We had to pay all 5.5K, we do not want to lose out on that. Someone mentioned putting the 2.5K in as income and then ignoring it in the calculation.  Seems odd.

Please help. 

Thank you.

[AmyC]

You paid $2k in 2022 that qualifies. IRS Pub 970 states:

You can't use any amount you paid in 2021 or 2023 to figure the qualified education expenses you use to figure your 2022 education credit(s).

[taxquestions15]

Ok thanks...can we use the 3.5K we paid this year on next year's return?

[AmyC]

You will want to check the rules next year - they change sometimes. You can either:

• Zip through a quick quiz with the IRS, Am I Eligible to Claim an Education Credit?
• Use Pub 970  and follow the flow chart.