KrisD15
Expert Alumni

Retirement tax questions

If you are saying you took a distribution in 2021 to pay for expenses for January, February and/or March 2022, that is completely allowable; However, if the school was paid in 2021 for the first three months of 2022, why isn't that amount reported in Box 1 of the 1098-T. 

 

Box 1 should report what was paid in 2021. 

 

If you took the distribution in December, but paid in January, the numbers won't match. 

If the distribution was used for Room and Board, enter the amount of room and board. 

 

If the distribution was used for 2022 tuition, enter the 1098-T and click the "What if this is not what I paid" link under box 1 and add the expenses you paid for the first three months of 2022. 

 

NEXT year, enter the 2022 1098-T the same way, (use the "What if this is not what I paid link") but SUBTRACT the amount you added on the 2021 1098-T.

 

To avoid confusion going forward, have the funds transferred directly to the school. 

 

 

According to the IRS:

"For 2021, treat an academic period beginning in the first 3 months of 2022 as if it began in 2021 if qualified education expenses for the student were paid in 2021 for that academic period."

 

IRS Pub 970

 

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