1098 T timing issue

[bgruddy]

I took withdrawl from a 529 plan to pay spring 2022 tuition in Dec 21.   I mailed the payment in December 21 but it did not get posted at the college until 1/5/22.   When entering in 1098 T information in Turbo Tax it provide a box for total tuition payment and you can enter in a different amount  that Box 1 on the 1098 T.  By doing this the withdrawl and payment now match with no tax impact.  If I submit to IRS this way will they accept?

[KrisD15 · Accepted solution]

Yes

you are allowed to pre-pay up to 3 months but the IRS also likes the distribution to match the same year as the expense. 

I suggest you have the funds transferred directly to the school going forward to avoid confusion. 

ALSO be sure you adjust for 2022 next year, don't use "Spring 2022" expenses a second time. 

[bgruddy]

Thank you!