- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Education
Basically, after entering the 1098-T exactly as printed, screens that follow will ask you for scholarships and expenses that were not included on the 1098-T. So it "should" all work out for you in the wash. Just remember these things:
Schools work in academic years, while the IRS does not. So the reality is, it takes you five tax years to get that four year degree. So with that said:
- Scholarships/grants are reported as taxable income (initially) in the tax year they are received. It does not matter what tax year the scholarship/grant is *for*.
Tuition and other qualified expenses are claimed/reported in the tax year they are paid. It does not matter what year is paid *for*.
So with that, you want to make sure you pay for the last semester of the senior year (which will be the 5th calendar year) before the end of the first semester of the senior year. That way, you won't risk losing out on those credits that can only be claimed a maximum of four tax years.
Schools work in academic years, while the IRS does not. So the reality is, it takes you five tax years to get that four year degree. So with that said:
- Scholarships/grants are reported as taxable income (initially) in the tax year they are received. It does not matter what tax year the scholarship/grant is *for*.
Tuition and other qualified expenses are claimed/reported in the tax year they are paid. It does not matter what year is paid *for*.
So with that, you want to make sure you pay for the last semester of the senior year (which will be the 5th calendar year) before the end of the first semester of the senior year. That way, you won't risk losing out on those credits that can only be claimed a maximum of four tax years.
‎June 6, 2019
12:17 PM