Thanks for the quick response.
RE:
Unfortunately, this is tax law and has nothing to do with the software on which you enter your information. You must have the 1099-Q distribution and the tuition expense in the same year.
So the bill came 11/2020 for the Spring 2021 semester and should have been **paid in 2020**. Similar to prior years, that would have resulted in the distribution for Spring 2021 reflected with the fall 2020 distribution on the 2020 1099Q. Also I believe it would have resulted in both Fall 2020 and Spring 2021 payments reflected on the 2020 1098T.
Does that make sense? I think this is the pickle I am in.
So I believe the **2020** 1099Q ONLY really reflects the fall 2020 distribution. Similarly I believe the **2020** 1098T ONLY reflects the fall 2020 payments. I am checking the latter with the school.
If I am right, for **2021** taxes I will see payments received for Spring 2021, Fall 2021 and Spring 2022 reflected on 2021's 1098T and similar distributions on 2021's 1099Q.
Does this sound right? If so, How will it affect my AOC credit? Will it create some sort of issue with her being considered a FT student in 2020? Will it create a red flag....I mean the first two years the 1098 & / 1099Q represented 2 semesters. This past year it would represent 1 semester and next year 3 semesters! Surely I can't be the first person this happened to...
Thanks!
RE:
To be a qualified distribution, the money must be used to PAY qualified expenses, in the same year as the distribution.
Well, the 1099T I believe only shows payments received for the Fall semester, not this spring; ie half a year. I am checking. I think they report it this way since the distribution for sp21 was sent to the school in 2021 even though the bill came in Nov 2020. The received th epayment in 2021 so I assume it must be reported on next year's 1098T. Again I am checking.
Re:
So, money paid in 2020 cannot be reimbursed by a 2021 distribution, even though the payment was for a 2020 term.
Not sure I follow ...I don'think this is the situation we are in.
Spring semester is usaully billed and paid in the prior year. SP21 billed and paid in Nov/Dec 2020.
Technically, my late payment resulted in a distribution and payment received in the current year. Billed Nov 2020 but distributed in 2021 and payment received in 2021.
