<p>Sorry if this has been posted already - I couldn't find a specific reference to it. I realize no one can give tax advice, but just an idea if I am in the ballpark would help.</p>
<p>I assume we are to only put on the IRS tax form how much we actually paid out in tuition, or does it require the amount listed in box 2 of the 1098-T, even if that's not what was actually paid by the student? The reason I ask is that the school put the total amount for the year 2009-2010 in the box, even though we only paid in 2009 for the fall quarter and the first payment due for the spring quarter. I've seen reference to this but have gotten varying answers.</p>
<p>For example: The 1098-T might say the tuition paid is $8000, which is for the complete 2009-2010 school year (no room/board included of course). Student took on student loans and has a small scholarship from school, the totals of which are divided equally between between fall 2009, winter 2010, spting 2010. So student actually paid out of pocket (i.e. cash) about $1800 toward the year's tuition through December 2009. </p>
<p>Is that what is reported on the tax form? Is FAFSA the same? (haven't gotten that far yet)</p>
<p>I am trying to get the taxes finished and then finish up the FAFSA. This is the first time we have are working with the Hope credit so we are learning the details! Thanks.</p>
<p>I looked at d’s 1098-T that came today and it looks like it is exactly what we paid out in 2009: spring 2009, fall 2009 and winter 2010. So its actually for a full tax year, not the school year. I remember doing an accounting of it last year and the 1098-T matched our calendar year payments exactly.</p>
<p>So the amount on the 1098T Box 2 is the amount for taxes, and scholarships must be subtracted from that amt (box 5). For Hope Tax Credit, I mean. </p>
<p>Unfortunately, I’ll have to check a little further. Son just started in fall 2009, so the tuition on the 1098-T is not the amount paid out only in 2009, but is the tuition for the whole 2009-2010 year (through spring 2010 - which of course hasn’t been paid yet). I’ve seen that a few colleges who also apply the 1098 this way have references on their websites in how to address this for taxes/FAFSA - but, of course, not ours! So I will use those others as a guide. Thanks for checking!</p>
<p>Form 1098-T. To help you figure your tuition and fees deduction, you should receive Form 1098-T. Generally, eligible educational institution must send Form 1098-T (or acceptable substitute) to each enrolled student by February 2, 2010. An institution may choose to report either payments received (box 1) or amounts billed (box 2), for qualified education expenses.</p>
<p>However, the amount in boxes 1 and 2 of Form 1098-T may be different than what you actually paid. Use only the amounts you paid in 2009. </p>
<p>We’ve always gotten 1098’s that include the spring semester tuition as well. I always figure out what we ACTUALLY paid for the tax year, and keep that info (how I came up with that figure) with my tax info.</p>
<p>Why are you doing the Hope tax credit? Won’t the American Opportunity tax credit get you a higher credit? And you can include books in American Opportunity tax credit</p>
<p>Yes, I meant the American Opportunity. I realized it shortly after I posted it, but the forum wouldn’t let me edit my post. Sorry for the confusion.</p>
<p>Thanks, jjc - that’s what I thought it meant. Having never done this before, I wanted to be sure I understood it correctly after I saw how they sent the 1098 with the full year’s tuition on it - threw us off a bit. Easy enough to figure out exactly what we paid out ourselves.</p>
That doesn’t make clear to me whether the $1,800 includes the loan amounts. The amount paid by loans counts as paid by the student, but not the scholarship.</p>