Where do we enter the out of pocket portion of college tuition and books paid directly to school and not covered by loan?

[xmasbaby0]

@Azgh 

To file a return for a prior tax year

If you need to prepare a return for 2016, 2017, or 2018 you can purchase and download desktop software to do it, then print, sign,  and mail the return(s)

https://turbotax.intuit.com/personal-taxes/past-years-products/

Remember to prepare your state return as well—if you live in a state that has a state income tax.

When you mail a tax return, you need to attach any documents showing tax withheld, such as your W-2’s or any 1099’s.  Use a mailing service that will track it, such as UPS or certified mail so you will know the IRS/state received the return.

Note:  The desktop software you need to prepare the prior year return must be installed/downloaded to a full PC or Mac.  It cannot be used on a mobile device.

[tennaw02]

I paid part of my tuition fee out of pocket the the trade school. Where do I fill that in the 1098T Form?

[AmyC]

When you input the 1098-T, box 1 has the total paid. Box 5 shows any scholarships. The difference would be what you paid. You can also add expenses for books, internet (COVID related), and other supplies required for school.

@tennaw02

[tennaw02]

@AmyC Thank you! Sorry, I'm still a little confused. My 1098-T box 1 shows the total tuition. Box 5 shows scholarship. I don't see where it shows th 2-3k I paid to the school out of pocket since my loans didn't cover the full amount and my scholarship was 600$. Am I able to put the 2-3k I paid out of pocket? If so, where do I place it?

Thanks Amy for your guidance!

[AmyC]

I think there is a disconnect. The 1098-T box 1 should have all of the tuition paid from every source to the school.

After you enter the 1098-T, a page will ask about other expenses paid to the school not already in box 1, you can add any extra expenses there. However, 2-3k sounds like way too much to not be already in your box 1 tuition.

Student loans are not scholarships and are not on the 1098-T. Loans must be repaid by you so it counts as you paying the expenses.

What does your 1098-T have on it?

[Hal_Al]

@tennaw02 said " I don't see where it shows the 2-3k I paid to the school out of pocket"

That amount shows nowhere on your 1098-T.  And you don't need it to claim a tuition credit or deduction.  As far as the IRS is concerned, money from loans (but not scholarships*) is treated the same as out of pocket.  It's your money, since you have to pay it back. 

As AmyC said, box 1 should include all payments (loans, scholarships and out of pocket).  If you do not believe it to be correct, you can adjust it.

The 1098-T is only an informational document. The numbers on it are not required to be entered onto your tax return. However receipt of a 1098-T frequently means you are either eligible for a tuition credit or deduction or possibly your student has taxable scholarship income. 

If you claim the tuition credit, you do need to report that you got one or that you qualify for an exception (the TurboTax interview will handle this)

You claim the tuition credit, or report scholarship income, based on your own financial records, not the 1098-T. In the 1098-T screen, click on the link "What if this is not what I paid the school" underneath box 1. You will then be able to enter the actual amounts paid. You will also reach a screen that allows you to adjust the scholarship amount for "amounts not awarded for 2020 expenses".

*There's even a loop hole available to claim the credit, if you are on scholarship, by declaring some of your scholarship as taxable income.