topic Tuition paid after 1098t was recieved in Education

Tuition paid after 1098t was recieved

Tedly — Fri, 07 Feb 2020 18:25:31 GMT

Our Daughter took some College summer classes and we dropped the ball on the tuition(we forgot about it until time to file taxes). The 1098 has her spring classes but because we paid the tuition for the summer classes after it was issued they are not on it. Can we still apply it to the 2019 taxes? Thanks

Re: Tuition paid after 1098t was recieved

MarilynG1 — Fri, 07 Feb 2020 19:28:13 GMT

Yes, you can add Tuition, Books, Fees, etc. that are not reported on a 1098-T.

Type 'education expenses' in the Search window, then 'Jump to education expenses'.

If you have already entered the 1098-T, Continue to 'Education Expenses Summary' (screenshot).

EDIT your student, and then either EDIT her school (if summer classes were at the same school) or Add Another School, if not.

If it's the same school, check the box under the Box 1 1098-T entry 'this is not what i paid to the school' and add the summer school tuition to the amount shown.

If it's a different school, add the school info and indicate that you did not receive a 1098-T, and 'qualify for an exception'.

You will then be able to add the summer school tuition, books and other fees.

Re: Tuition paid after 1098t was recieved

Tedly — Fri, 07 Feb 2020 21:55:40 GMT

ok Just so I'm clear, I can still apply it to 2019 taxes even though it was paid in 2020?

Re: Tuition paid after 1098t was recieved

MarilynG1 — Fri, 07 Feb 2020 22:00:57 GMT

No, sorry, did not pick up from your question that it was actually paid in 2020. You will need to add it to your 2020 return.

Re: Tuition paid after 1098t was recieved

Tedly — Fri, 07 Feb 2020 22:04:19 GMT

I realized that I had left it ambiguous. Sorry about that. Thanks for the information

Re: Tuition paid after 1098t was recieved

MarilynG1 — Fri, 07 Feb 2020 22:11:09 GMT

My pleasure! At least you will know how to add it in 2020 if it's not on the 1098-T...

Re: Tuition paid after 1098t was recieved

Bestvalue888 — Wed, 12 Feb 2020 00:06:51 GMT

Hi I have a similar issue and hope I can get some help from you. I also paid tuition and room and board $12K to my son’s college on 1/2/2020 for Spring 2020. The statement date was 12/2/2019 for tuitions and 1/2/2020 for room and board. We could not pay everything till 1/2/2020. I am thinking I can use this $12K as the educational expenses to offset the 529 withdrawals I made in 2019. Can I? The only 1098-T I received was for Fall 2019 semester. Thanks.

Re: Tuition paid after 1098t was recieved

MaryK4 — Wed, 12 Feb 2020 00:35:59 GMT

Yes, as long as the 529 distributions were used for the educational expenses and paid within a reasonable time you can apply the costs even though they were paid in the next tax year- you just cannot use the same payments for education credits in 2020. I recommend keeping a running total of expenses and payment for all the years so if there ever is an IRS issue, you have the records available instead of trying to find them later.

@Bestvalue888

Re: Tuition paid after 1098t was recieved

jo-ko — Wed, 12 Feb 2020 02:31:13 GMT

I have the exact same issue. I just want to clarify. We received 1099-Q for both Fall 2019 and Spring 2020 because the monies were withdrawn from the 529 in 2019 for both of those semesters. However, the 1098-T from his college only shows qualified expenses for the Fall 2019 semester. Because we didn't actually pay the school for Spring 2020 until 1/6/20, the Spring 2020 qualified expenses won't be reported until the 2020 1098-T. Is that correct? But, can I calculate the qualified expenses for Spring 2020 and put them on my 2019 return so that they match the 529 withdrawal?

Re: Tuition paid after 1098t was recieved

MaryK4 — Wed, 12 Feb 2020 02:44:26 GMT

Yes, that is correct. Please just keep track of which expenses were paid under the 529 so you do not duplicate in 2020 and claim the education credits-- essentially when you get the 1098-T in 2020 do not just enter it in TurboTax- you will have to subtract out the amount you applied in 2019. It would be nice if the IRS would have a better system to keep track of the credits/529s as a running balance because currently it can get confusing.

@jo-ko

Re: Tuition paid after 1098t was recieved

Bestvalue888 — Wed, 12 Feb 2020 02:59:48 GMT

I am glad I wasn’t the only one who is confused of how this works lol. Thanks for posting your questions because I don’t even know if mine made sense. 🙂

Re: Tuition paid after 1098t was recieved

Bestvalue888 — Wed, 12 Feb 2020 03:06:13 GMT

Thanks for answering. So to be sure:

For example, I will override the 1098-T box 1 in Turbo Tax to the tuition amounts for both semesters ( which is 1098-T $7K plus $8K not showing on 1098-T till 2020) Then I will put the room and board expenses I paid for BOTH semesters under the Educational Expenses, correct? Then next year 2020 when I receive the new 1098-T, I need to subtract what I had claimed $8K, correct? Thanks.

Re: Tuition paid after 1098t was recieved

Bestvalue888 — Wed, 12 Feb 2020 03:09:14 GMT

Thanks for answering. So to be sure:

For example, I will override the 1098-T box 1 in Turbo Tax to the tuition amounts for both semesters $15K ( which is 1098-T $7K plus $8K not showing on 1098-T till 2020) Then I will put the room and board expenses I paid for BOTH semesters under the Educational Expenses, correct? Then next year 2020 when I receive the new 1098-T, I need to subtract what I had claimed $8K, correct? Thanks.

Re: Tuition paid after 1098t was recieved

Bestvalue888 — Wed, 12 Feb 2020 16:21:22 GMT

I also heard that if the Educational Expenses are more than the 529 withdrawals, I don’t even need to report 1099-Q and 1098-T on the tax return at all. Is that true? Thanks!

Re: Tuition paid after 1098t was recieved

KatrinaB48 — Wed, 12 Feb 2020 20:15:01 GMT

Yes, that is true. As long as you have used all the money for educational expenses you are not required to report either form.

Re: Tuition paid after 1098t was recieved

Bestvalue888 — Wed, 12 Feb 2020 20:23:39 GMT

For sure IRS will not chase me since 1099-Q was reported to IRS, right? I just do not want to flag any audit for this. In your opinion, would that be safe to just put everything in TurboTax to eliminate the chance of being questioned, do you think? 🙂 but the only drawback is I have to report next year if I do it this year, correct?

Or don’t even matter since next year I will only receive 1098-T and no 1099-Q(I have no more 529 fund) and I can just ignore it completely?

Re: Tuition paid after 1098t was recieved

SusanY1 — Wed, 12 Feb 2020 20:35:02 GMT

You won't be any more likely to be flagged for an audit for not reporting either of these forms as neither is required to be listed on your tax return unless you have taxable income related to the form(s).

Form 1098-T is most often used to claim a tax credit (benefit) although sometimes it shows a taxable scholarship. The IRS will definitely not chase you down if you don't file to claim money they would give to you - but if you failed to list a 1098-T and you would get money back, we would want you to amend the return to get that money!

If you took a distribution from a 529 plan, and those funds were used only to pay for qualifying education expenses, you don't need to list it on the tax return at all.

If it makes you feel any better, take a look at the Form 1099-Q itself - you will see in the "Instructions to recipient" the note: "Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return" (emphasis added).

So you're quite correct, the IRS isn't going to chase you!

@Bestvalue888

Re: Tuition paid after 1098t was recieved

Bestvalue888 — Wed, 12 Feb 2020 23:51:24 GMT

That is awesome! Thanks so much for the detailed response and greatly appreciated your assistance! That really took off a lot is stress on my part lol.:) Thanks!