topic 1098-T worksheet box 2 AND box 7 question in Education

1098-T worksheet box 2 AND box 7 question

dyons — Sat, 11 Apr 2020 13:44:57 GMT

I have been reviewing the various worksheets and notice an entry in the worksheet which I do not believe is correct. I attach a screenshot below.

It so happens that when I look at my child's 2018 1098-T I find that Box 2 is blank and Box 7 has a check mark. (I can share an image of that 1098-T if that would help.)

How can I (or TT) answer such a question ("...box 2 filled in AND Box 7 checked") when Box 2 is blank?

Any guidance would be appreciated. Thanks in advance.

Re: 1098-T worksheet box 2 AND box 7 question

dyons — Sat, 11 Apr 2020 13:46:31 GMT

Re: 1098-T worksheet box 2 AND box 7 question

DavidS127 — Sat, 11 Apr 2020 14:25:02 GMT

Based on the information you provided about your 2018 Form 1098-T, the answer to the 2019 tax return question B is "No". Your 2018 Form 1098-T did not meet the dual test for both "Box 2 filled in and Box 7 checked".

Re: 1098-T worksheet box 2 AND box 7 question

dyons — Sat, 11 Apr 2020 15:37:29 GMT

Thanks, David, for your prompt response.

I wonder if in the snippet I showed, the Box 2 could be a typo (the correction overlooked by TT)? From 2018 onward, Box 2 was not supposed to be used (although it was retained on the form) and Box 1 used to show the amount actually paid.

With that explanation, the answer to the question would be YES - because in the 1098-T , Box 1 is filled and Box 7 checked.

Any thoughts? Thanks, again.

Re: 1098-T worksheet box 2 AND box 7 question

DavidS127 — Sat, 11 Apr 2020 15:48:23 GMT

Yes, that worksheet language is "leftover" from the time when (prior to 2018), colleges had an option to use box 1 for "Payments received" or box 2 for "Amounts billed" to report tuition.

Re: 1098-T worksheet box 2 AND box 7 question

dyons — Sat, 11 Apr 2020 16:20:50 GMT

So would it be OK to assume that it really should have said Box 1 filled AND Box 7 checked and change the answer to YES. What I showed you in the snapshot was MY change to YES. The original TT entry had been NO. I found that I could change it myself, with, so far, not changes to any outcome.

Should I retain the TT check mark of NO or change it to a YES based on the discussion above?

Thanks again for your responses.

Re: 1098-T worksheet box 2 AND box 7 question

DavidS127 — Sat, 11 Apr 2020 18:15:19 GMT

You should leave the box marked No. The question is not asking about box 1.

Re: 1098-T worksheet box 2 AND box 7 question

dyons — Sun, 12 Apr 2020 15:07:15 GMT

Hello David:

Thanks again for your response. I apologize for persisting, but if I answer the question B in the student information worksheet as "NO" then it flows through to Form 8862 (which IS submitted to the IRS) and it answers a question (no. 3 in the snippet shown below) in the negative.

This is clearly incorrect because in 2018, Box 7 WAS checked but Box 2 was not filled. However, answering it NO in the student worksheet causes the second part to also be seen as a negative, i.e., unchecked.

It is not possible to change this answer to question 3 in Form 8863 to YES manually. The only way to do so is to go back to the student worksheet and change the answer to question B as a YES.

That is why, in my previous message, I had asked if the text for the student worksheet was an error (overlooked typo) and if it really should have been box 1.

I feel that the answer to question B in Form 8863 is the one that should be correctly answered. As it stands, it is answered incorrectly owing to this glitch.

Your thoughts would be much appreciated.

Re: 1098-T worksheet box 2 AND box 7 question

DavidS127 — Sun, 12 Apr 2020 15:41:26 GMT

Yes, I concur that you must answer the question B on the 1098-T Tuition Statement "Yes" on order for the Form 8863 question to be correctly answered "Yes".