I paid my school tuition for the January 2017 term in December 2016. The university didn't take the money from my student account until Jan 2017. Can I claim it?

My bank statement shows I paid December 2016. The university is stating that since they did not "take my money" until January 2017, that it will be on my 1098-T for 2017, even though I paid in 2016.
PatriciaV
Employee Tax Expert

Education

Yes, if the funds were no longer under your control, you can deduct qualifying expenses paid in the tax year for:

  • Education during in the year, or
  • Education that begins during the year, or
  • Education that begins during the first three months of the following year.

However, if you had control over the funds (the account was like another bank account), then you cannot deduct those expenses until next year.

If you report the expenses this year, remember that you won't be able to report them again next year, even if your 2017 Form 1098-T shows that you paid this amount.

This link will give you a great overview of education deductions: TurboTax Tax Tips: Deduction for Higher Education

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