1098-T questions

We just got 1098-T, in Box 2 (qualified expenses): Fall + Spring, but in Box 5 ( scholarships & grants): Fall only.
Spring tuition paid in Dec and Box 2 > Box 5.
We plan to put different number in our tax report for Box 2 to match box 5 period (Fall only). Any advice?
Thank you.

What do you mean “plan to put different number in our tax report for Box 2 to match box 5 period (Fall only).” What are you planning to put in which box of what tax form?

The 1098-T for is really for informational purposes only. It may or may not accurately reflect when certain costs were incurred and/or paid.

For the AOTC it counts when the QEE was paid I believe.

The reason why spring scholarships, grants were not on the 1098T is probably the rule that financial aid can not be applied more than 10 days before term starts.

So if the term started 18th of January, the aid would be applied on the 8th. So it will be reported on the year 2016 1098T.

I like that my D’s school’s spring term starts earlier and aid gets applied in late December so she has two semesters of billed charges and two semesters of aid on her 1098T.

https://www.irs.gov/uac/American-Opportunity-Tax-Credit:-Questions-and-Answers

I mean I’d like to use the same academic period ( Fall ) for numbers in box 2 and 5.

Glad you started this thread!

Just got ours for D, a freshman. It includes the entire academic year’s tuition/fees and the entire year’s grants.

The second semester began in 2016 but we received, and paid, the bill in Dec 2015.

So for 2015 taxes am I working with the entire amount of both semesters? Or just the 2015 portion?

Use for what? If you’re looking for advice or reassurance, you need to tell us specifically what you want to do. What tax form(s) are you filling out and what line number(s) are you dealing with?

@OHMomof2 , yes you can use the whole academic year since it was all billed and paid in 2015.

(See quote from above link) second semester bill was paid for term starting in Jan of 2016.

@Kathsj, if you paid for both fall and spring tuition and fees in 2015 and want to claim the AOTC on your taxes then you have to use the amounts you paid for this year I believe. I don’t think you can use expenses paid this year and claim them next year.

You said that box 2 is more than box 5, that’s good because then you have expenses to claim to get the AOTC.

Oops, I apologize. It should be : Box 2 (qualified expenses) : Fall & Winter numbers and in Box 5 (scholarships): Fall only. As I mentioned earlier, we paid Winter tuition in Dec.
Can we use different number than what’s written in box 2 1098-T to answer questions @ Turbo Tax? Because these
two numbers, the ones written in 1098-T, are not based on the same academic period.

You need to come up with your own numbers which reflect the amounts you actually paid for QEE during the tax year… Books, required lab/class fees, etc. will not show up on the 1098 form, but are QEE. A laptop could also be considered as QEE if one is required by the school. It is OK that the numbers on your tax return may not match the 1098 form exactly, or that the spring semester charges are included on the 2015 form, but not paid until 2016.

Next year, you will use the 2015 and 2016 1098 forms to do the calculations for the spring and fall semesters of the 2016 tax year. Just keep a record of how you calculate the figures you report on your tax returns.

What do your tuition statements from student account portal say? Were tuition and fees billed and scholarships and grants applied to account in 2015 or 2016?

I’m not sure if scholarship amounts that are reported in 2016 for spring 2016 semester can be included, but I’m pretty sure that you cannot use expenses paid in 2014 or 2016 for 2015 AOTC.

So you want to claim the AOTC education credit on your taxes? What ballpark are the figures on the form?

How much approx is box 2, box 5?

It is not clear if AOTC will continue past 2017 so we should maximize the credit we can claim, right?

^^I thought that AOTC was extended late in 2015.

Yes, the AOTC was made a permanent part of the tax code last month (well, as “permanent” as any part of the tax code can be).

https://www.irs.gov/instructions/i8863/ch01.html

I’ve found the answer: It is exactly our problem.
https://ttlc.intuit.com/questions/2819884-should-i-double-the-amount-in-box-5-of-my-1098-t-to-reflect-the-full-year-of-tuition-it-aided-in-box-2
Thanks to you all for the help.

^ very helpful link, thank you!