<p>So, just when I was gloating about my last FAFSA being in my past, I've run into a tax return issue related to federal education credits.</p>
<p>My son's old school reported 'qualified education' amounts on the 1098T they sent according to SCHOOL year.....as in fall/ spring on one.</p>
<p>His new school (transfer) does it by CALENDAR year as in spring/fall on one.</p>
<p>It puts a crimp in my tax reporting since I'd planned on having two semesters on his 1098T for 2006 and it has only one.
IRS publication 970 says you can consider amounts paid in 2006 (even if it's for 2007) if semester starts in first 3 months of the year, which it does.</p>
<p>Soooo, I'm thinking of adding in Spring 2007 tuition on 2006 return per pub 970. You think I'll run into problems since the IRS reporting form 1098T has only Fall 2006 on it????</p>
<p>If you're wanting that bottle back now MM, I think bear bear killed it. But it sounds to me (and I haven;t read all of Pub 970 yet) as though you will be OK. </p>
<p>As far as I know, the IRS uses automated syatems for reviewing, flagging returns which are significantly different year over year , or from one set of parameters (ie. agi equals x, typical tuition reimbursement equals y, charitable contribs equal z) with a statistically developed error band...sets a flag, call musicmom and lets look at her returns for the last decade (yikes).</p>
<p>I dont know your exact situation here, but it sounds as if you are allowed to do it if the pub sez you can.</p>
<p>Can't comment on how well the IRS cross references 1098 from soc sec # to IT Returns. I would guess.....Not very well, and as long as you had the documentation for the disbursement, I'd forge ahead.</p>
<p>I like your take. I did decide to forge ahead, armed with my trusty portion of pub 970. We are so conservative that we probably end up paying a bit more than needed. In this case, we did actually pay the school(s) so I'm hoping it'll be OK.</p>
<p>Now, if you can wrestle that bottle back from bear bear, I'd truly appreciate some. Guess I'll think twice before advertising to the world how on top of things I am!!</p>