Can she take the Education Credits and Deduction in 2018?

[tyrainman]

My daughter started grad school in Jan 2019. Paid tuition in Dec 2018 for the spring semester. Received a 2018 1098-t form for 2018. even though she did not actually attend school in 2018 can she claim the education credit and deduction?

[KrisD · Accepted solution]

Yes, if payments were made in 2018, they can be for classes that started in 2018 and/or the first 3 months of 2019. 

She will not be eligible for the AOTC if either it was taken 4 times already and/or she was no longer an undergrad in 2018. But she may be eligible for the Lifetime Learning Credit. 

The Tuition and Fees Deduction is no longer available because of the tax law changes. 

According to the IRS:

“For 2018, treat an academic period beginning in the first 3 months of 2019 as if it began in 2018 if qualified education expenses for the student were paid in 2018 for that academic period.”

CLICK HERE for IRS Pub 970 Tax Benefits for Education