1098T help please

Paying for College
1

My D started college Fall 2020 and all of that semester’s tuition was paid in 2020 (by Dec 31).

Spring 2021 semester began mid-January 2021. I paid her tuition in full on Jan 2nd.

Her 1098T has the total amount I paid in 2020 only (as it should) for Fall semester only. This is listed in Box 1. Nothing in box 2. (all good so far)

However, box 7 is checked. I don’t think it should be.

I had D email FA and they said it was because she was enrolled for 2021 semester in November.

This makes no sense to me. We didn’t pay any of 2021 tuition in 2020. Which is the only reason to check box 7, right?

Unfortunately (or fortunately?) her tuition is less than $4000 for 2020. So, I’m going to be claiming every penny (including adding books and fees not on the 1098T).

I don’t want to be audited. Should I push the school for a correction or am I wrong?

2

I also don’t think box 7 should be checked based on the facts you are reporting. Ask the school for a corrected form. Most schools used to report the amount charged (that’s what box 2 was used for) instead of the amount received, as is now required. The change happened a year or two ago; perhaps your daughter’s school is still used to checking box 7 because they always billed for the spring semester in the previous calendar year. (Box 7 formerly was used to indicate “the amount in box 1 or 2 includes amounts for an academic period beginning January-March 20XX.”)