1098 T and 1098 Q - Amounts paid in one year but not received by school until the next year

[joe1572]

I paid tuition at the end of 2024 for the 2025 Spring semestar.  My 1098-Q reflects Fall 2024 Payments and the amount I paid at the end of 2024.  My 1098-T is only showing the Fall 2024 expense.  If I enter only what is on the forms I will incur taxes, however these are for tuition expenses that appear to be crossing periods.  How do I get this situation adjusted so that I don't have a tax liability for these legitimate school expenses.

[KrisD15]

If you're sure that is what happened, enter the 1098-T and use the link under Box 1 "What if this is not what I paid?" and enter the full amount. 

Be sure to adjust the other way next year. 

Also, remember that a distribution can be used for Room and Board which also makes the distribution tax-free. 

PUB 970 

[joe1572]

Hello Kris,

Thank you for those insights.  What you have noted is exactly what needed to be done.  This is truly a timing different in funds being pulled out of the 529 plan the last week of December 2024 and the University not receiving or cashing the funds until the first week of January 2025.  I'm very confident that I have all of the support to verify this situation if it is ever questioned.  Taking the instructions you provided eliminated the multiple thousand dollars of tax liability that should not be incurred.

Thanks for the prompt response.

Joe