topic How do I file 1098-T forms with discrepancies? in Education

How do I file 1098-T forms with discrepancies?

rregniere — Thu, 06 Jun 2019 12:31:11 GMT

So my 2016 1098-T form has box 7 checked and includes what I was billed for during the spring 2017 semester but does not include what I received in grants for that semester. My 2017 1098-T form does not have box 7 checked and includes the grant received for spring 2017 but not what I was billed for.

Enter the 2017 1098-T as the school reported it, but use...

KrisD — Thu, 06 Jun 2019 12:31:13 GMT

Enter the 2017 1098-T as the school reported it, but use the "What if this is not what I paid?" link under Box 2 on the 1098-T screen in the Turbotax program and report what was paid to the school in 2017, this would include the scholarship that posted in Spring for the Spring classes.

Enter the 1098-T as the school reports it, but use the student's school account records and your receipts to match expenses incurred with expenses paid. Claim the expenses paid in the tax year for the education expenses of that same tax year and/or the first three months of the next tax year.

According to the IRS:

"Prepaid expenses. Qualified education expenses paid in 2017 for an academic period that begins in the first 3 months of 2018 can be used in figuring an education credit for 2017 only. See Academic period, earlier. For example, if you pay $2,000 in December 2017 for qualified tuition for the 2018 winter quarter that begins in January 2018, you can use that $2,000 in figuring an education credit for 2017 only (if you meet all the other requirements).

You can't use any amount you paid in 2016 or 2018 to figure the qualified education expenses you use to figure your 2017 education credit(s).”

The opposite is also true, if you were billed in 2016 for classes that started in the first 3 months of 2017, but that expense was paid in 2017 (including scholarships that posted in 2017), that expenses may only be used in 2017.

CLICK HERE for IRS Pub 970 Education Credits

Make sure you did not use those expenses in 2016 towards a credit.

Just to make sure, do I include the $2,133 that I was bil...

rregniere — Thu, 06 Jun 2019 12:31:14 GMT

Just to make sure, do I include the $2,133 that I was billed for during the spring 2017 semester even though it was included on my 2016 1098-8. The spring 2017 scholarship shows up on my 1098-T from this year. Sorry if I wasn’t clear.

1098-T*

rregniere — Thu, 06 Jun 2019 12:31:15 GMT

1098-T*

Yes, you include the amount billed in 2016 because it was...

KrisD — Thu, 06 Jun 2019 12:31:16 GMT

Yes, you include the amount billed in 2016 because it was paid for in 2017. I added to the original answer.