Tax Year Prior to 2020: I paid tuition in December of 2018 for the January 2019 semester. Can I still file this for 2019 taxes? Or should I have filed this with last years?

[ColeenD3]

Please see this information from the Help article.

Can I include education expenses on my 2019 return that I paid in 2018 or earlier?

You can't include expenses you paid in 2018 (or earlier) on this year’s 2019 tax return. If you forgot to include them, you'll need to amend your prior-year return to claim those expenses.

Likewise, if you paid tuition in 2019 for the 2020 school year and the classes begin in the first three months of 2020, you’ll include them on your 2019 tax return.

[clrone]

We took a 529 distribution to pay for Spring 2020 semester in December of 2019. The distribution shows on the 2019 1099-Q, however, the payment to the college didn't show on the 2019 1098-T. It makes it look like we took extra money out. How should we handle this?

[VictorW9]

Generally, your 529 withdrawal does not have to match your 1098-T. The maximum allowed for a 529 deduction is 100% of the beneficiary's qualified higher education expenses paid in the year - tuition, fees, books supplies, equipment and room and board less $4,000 which is redirected to the American Opportunity Tax Credit (AOTC). So, as long as the the total withdrawal does not exceed the amount calculated as qualified higher education expenses, then you should be fine.

[clrone]

Thank you for your help!

[sarah96]

Could you please clarify this for me?

I took a distribution from my ESA for $2000 in December 2020. In January 2021 I paid for my tuition with the $2000. I received my 2020-1099-Q showing the $2000 distribution & my 2020-1098-T shows $0.  Will I get taxed the 10% penalty because the tuition expense was not incurred in the same calendar year as the distribution? If so, is there anyway I can reconcile this to show the IRS that I used the $2000 towards my tuition? 

Thank you!! I'd really appreciate if you could please help me out. 

@VictorW9  @ColeenD3 

[ColeenD3]

Unfortunately, it must be the same year.

Coordination With American Opportunity and Lifetime Learning Credits

The American opportunity or lifetime learning credit can be claimed in the same year the beneficiary takes a tax-free distribution from a Coverdell ESA, as long as the same expenses aren't used for both benefits. This means the beneficiary must reduce qualified higher education expenses by tax-free educational assistance, and then further reduce them by any expenses taken into account in determining an American opportunity or lifetime learning credit.

Education Credit source