Hi,
I paid for our son's Spring Semester 2021 Tuition & Fees on Dec 29, 2020, to be able to claim AOTC for them in Tax Year 2020. However, the college changed from remote classes (Covid) after Jan 1st and required students to return to campus for most classes. He wasn't ready to do that yet and he dropped a couple of those classes. So before I filed last year, we received a $734 refund.
In order to simplify things (I thought), I went ahead and subtracted the $734 from the 2020 1098-T Box 1 amount and filed for 2020. Now the 2021 1098-T has a Box 4 adjustment of $1,201.34 (Box 7 is checked). I don't understand this. If he was refunded $734 after dropping the classes, shouldn't the adjustment in Box 4 also be $734? He dropped the classes even before the first day of class if that matters.
Box 1 = $8309, Box 4 = 1201, Box 5 = 3893. I'm unsure what to claim now for AOTC in 2021. Any help will be much appreciated!
