Can I just say.......

[WhiteOleander]

I think the 1098T is the MOST USELESS form the IRS has ever dreamed up.

The form always has the box #2 filled in. It reports the amt billed. But there is nothing in box #1 that reports the amt. actually paid. I make my clients bring me a print out from their school so I can accurately tell what they paid and what scholarships, etc they received.

Form 1098T. Thanks but no thanks.

[RitaB]

I agree!

I think the 1098T is the MOST USELESS form the IRS has ever dreamed up.

The form always has the box #2 filled in. It reports the amt billed. But there is nothing in box #1 that reports the amt. actually paid. I make my clients bring me a print out from their school so I can accurately tell what they paid and what scholarships, etc they received.

Form 1098T. Thanks but no thanks.

You also have to ask them about tax-free assistance not on the form. That form is a big flat tire.

[BP.]

Totally agree. And even with the account print out from the school, I find it difficult to see how the box 1 figure has been calculated --- often doesn't match the amounts billed on the account statement.

Add to that the fact that clients can't seem to wrap their brains around the notion that borrowed funds count towards the tax credit/deduction --- "I didn't pay anything for tuition last year" --- and this becomes one of my most challenging concepts to communicate with clients about.

[Nelstax]

I thought I was the only one who hated that form!

[jimmcg]

I think the 1098T is the MOST USELESS form the IRS has ever dreamed up.

The form always has the box #2 filled in. It reports the amt billed. But there is nothing in box #1 that reports the amt. actually paid. I make my clients bring me a print out from their school so I can accurately tell what they paid and what scholarships, etc they received.

Form 1098T. Thanks but no thanks.

You may be expecting too much from this form (and the Federal beurocrats). If it flags the fact that there may be an educational credit or deduction available if you pursue your request for information from the taxpayer then it has served it's purpose...........Don't forget, the people that design these forms would not know a tax credit or deduction if it jumped up and bit them in the butt. It is up to "tax experts" like us to discern these facts.

[WhiteOleander]

Well, the client gets upset. They say, "well, it's all right there"(meaning form 1098T). Sometimes I don't know if they really don't understand the problem with the form, or they think I'm stupid.

I had one client bring one in with over $17,000 in box 2. I asked how much he had actually paid? He said it's right there in the box. I pointed out that there was also over $16,000 reported in scholarship/grants reported on the form. So, again, how much did he pay and what did he pay for? I guess he thought I would just say "Oh well, it has that much in box 2 so I will take that much for the credit. Duh........"

[Jesse]

Well, the client gets upset. They say, "well, it's all right there"(meaning form 1098T). Sometimes I don't know if they really don't understand the problem with the form, or they think I'm stupid.

I had one client bring one in with over $17,000 in box 2. I asked how much he had actually paid? He said it's right there in the box. I pointed out that there was also over $16,000 reported in scholarship/grants reported on the form. So, again, how much did he pay and what did he pay for? I guess he thought I would just say "Oh well, it has that much in box 2 so I will take that much for the credit. Duh........"

This is what I mean when I said in another post how the client is looking for you to put words in there mouth! They want you to tell them how much they paid. Just had the same thing on Friday, I called and asked taxpayer "It says on the form 1098T you were billed $8,000 for tuition, what I need to know is how much did you actually pay? Could be timing differences, such as billed in December but you didn't pay until Jan 09, or maybe a class was dropped and although billed you were refunded, or for some reason a bill was not paid?"

They would call the school and see if they could gather the information. Yesterday I have a message on my answering machine, they called the school and the school told them the amount in box 2 is correct, that is what they were billed. Arrgghhh!!!

What did I ask?! I'm not calling back until tomorrow.

[taxmom34]

i hate that form too. wouldn't it be easier for us and the schools, if they just checked off the little box that says half time student? then print up the kid's statement. and let us do the math.

[Jesse]

i hate that form too. wouldn't it be easier for us and the schools, if they just checked off the little box that says half time student? then print up the kid's statement. and let us do the math.

Or if they just check the box full/half time and not put any numbers in and let the clients bring in statements of how much was paid and when it was paid. If I recall correctly, when these forms first came out that is what happened and although you needed to explain why they got this form with no amounts, it made them do the legwork for what was actually paid - rather than have them look at you like you should know because there is an amount in box 2.

I think another problem can be the fact that the schools will not give any information out to parents. So you are telling the parents what you need and they need to tell the kid and by the time the kid asks the school all is lost in translation so you're back to square one.

[joanmcq]

The reason there were no numbers the first year is the schools complained they were not able to report all that yet.

What you have to remember when you ask what they paid is that loans count as payment!!! When I took out loans, the tuition got paid first and I got the rest. So to the unsuspecting, they didn't actually write out a check or anything. But they did pay through the loan. At least the form has scholarships you can net against the amount billed.

[erchess]

It would serve the government right

if we as tax professionals agreed that when there is an amount in box two of a 1099T we are going to assume that the taxpayer paid that exact amount of tuition and had no grants or other reductions whatsoever. As we've discussed here loans count as tuition paid. The IRS would spend more money on the collections process than they would collect in additional taxes if they tried to do anything about this and they would eventually end up requiring that form 1099T have all the info necessary to calculate the tuition credit and that it be keyed in on e-filed returns and accompany paper returns just like a W-2. I'm not seriously suggesting that anyone do this and I'm certainly not going to do it but it would serve the government right if enough of us to create a problem did.

[Jiggers]

1098T Useless

99.9% of my clients kept no records of the education expenses. They rely only on the 1098T.

[outwest]

One school that does is right..

one of our state universities automatically prints the student ledger on the back of the 1098T. Sadly, it's not a process followed by the other state schools or local junior college.

[Lion]

Student

Student goes on-line to get his statement of receipts and disbursements. Can do it from your office if he's there. Maybe he'll give you his password even if he won't give it to his parents. (I wanted to withhold money from our daughter/my stepdaughter until she handed over password, but divorce decree forces my husband to pay her college expenses, so...)

[joanmcq]

Our state universities have the ledger on the back too. Very useful. But what about next year when books qualify as expenses?