Can't use 1098-T from Box 1 if actually paid in prior year???

Dom2 · ‎February 12, 2021

Background: Received a 2020 1098-T in my daughters name for tuition costs we paid. 2020 is the first year she is no longer our dependent finishing with her graduate degree in 2020. On this community it was offered that since the 1098-T is in her name and she is no longer a dependent she is the one that needs to use the tuition figure from the 1098-T. As I began to complete her taxes I wanted to determine if there were any education credits she was still entitled to as I know I have used a number of them over the years while she was in school and was our dependent. I began using the IRS tool, Interactive Tax Assistant (ITA) (link below).

Question: As I was using the tool it stated that if the tuition was actually paid in 2019 (they were paid mid December) she was NOT eligible for any education credits. Does this sound correct?

https://apps.irs.gov/app/IPAR/investigate/IPAR_1/en-US/Attribute~EDCR_interview_complete~global~glob...

Thanks

ReneeM7122 · ‎February 12, 2021

Correct, education credits that were paid in 2019 cannot be used for tax year 2020. The 1099-T will reflect money paid to the school in 2020.

The IRS link that you provided seems not to be open, but here is a TurboTax education credit calculator.

If you need to go back and amend yours or your daughter's 2019 tax return to claim unused credits, you can. Here's a TurboTax article that explains how.

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Can't use 1098-T from Box 1 if actually paid in prior year???

Education