Thanks for all the info @Hal_Al . I followed your instructions https://ttlc.intuit.com/community/college-education/discussion/how-to-split-1098-t-qualified-college... on my 2018 taxes (just filing now but they owe us a refund). The software worked just like you described but our situation is different so I wanted to double check w you before filing.
Here's the 2018 situation. We received 2 1099-Qs. My husband's was for $2000 and my daughter's was for 15,850. The 1098-T says 15,500 in box 1 and 3,000 in box 5 (Net Tuition & Fees 12,500. It has box 3 checked (educational institution changed reporting method) and Does not have a check in the box about including expenses from Jan-March 2019.
Here's what I did: I enter the 1098-T on our return (for AOTC). My HUSBAND got a 1099-Q so I also entered that (ignored my daughter's 1099-Q). I put in her other school expenses in as well so that it was clear that the 2K 1099-Q was not taxable.
Did my daughters return. Entered the 1099-Q then the 1098-T and her other expenses. Put that 6K was already used on our return. Did I do this right? Also should I go in to our return and take out all her expenses above and beyond the 1098-T?
I have ANOTHER question on the 1098-Ts I am getting and how to coordinate with 529 withdrawals.
A lot of details below. I hope it makes sense.
Sarah started school in Fall of 2016 and gets a 3K per year merit scholarship (1500 per semester). She was on campus in the dorms Freshman and Sophomore year and Off Campus Junior and Senior year. Will graduate this Spring. We took AOTC in 2016, 2017, 2018 and will in 2019
in 2018 we paid the 12,500 reflected on the 1098-T PLUS $6,250 (2 payments of a 4 payment plan (Nov, Dec, Jan, Feb)) for Spring 2019.
Every year we take the AOTC we are very careful to pay 4K in Tuition and only reimburse from the 529 over and above that. She has enough other expenses for 2018 (she lived off campus in the Spring) for us to take the tax credit AND for $ on both 1099-Qs to not be taxable whether or not we count the 6,250 we paid for Spring 2019.
The 1098-Ts are really confusing to me. Does not match the bills for Tuition and fees and numbers are all over the place.
2016 Box 2 23.6K Box 5 1500 Box 7 (includes $ for Jan-March 2017) is checked. Fall 2016 Freshman Year
2017 Box 2 - 25.6K Box 5 3K Box 7 checked - Freshman Sp / Sophomore Fall
2018 Box 2 15.5 Box 5 3K, (Net 12.5K) New Reporting Method and does not include Jan-March 2019 - Soph Spring / Jr Fall moved off campus
2019 Box 2 33,187.50** Box 5 3K - Box 7 checked off. **Tuition and Fees for Fall 2019 and Spring 2020 were 30,400 Jr Spring / Sr Fall
2020 - Are we going to get one since they never put the last 1500 in Scholarship anywhere? - Sr Spring
The 2019 1098-T is HUGE. I have no idea where they got that 33K number and we didn't take enough from the 529 to even make a dent in that. Do you have to take $ out of the 529 in the same year as the 1098-T says you paid? We would like to get some more money out for 2019 retroactively.
Thanks in advance.
