1098 T

[RNuse09]

Hello,

I have a client who just walked in with 1098 T. There is an amount in box 2 of 1,290 and nothing in box 1. The client has a loan with Sallie Mae. Can I take the amount in box 2 for the american opp credit. The student was atleast half time. Thanks in advance for any answers.

[taxmandan]

Better to get a copy of their account payments from the college and use the $$ number on there for how much was paid in tuition, etc.

[RNuse09]

What if Sallie Mae paid the amount to the school. Could I deduct the full amount that they paid?

[Kram BergGold]

Key point

The issue is when was the payment made. Box 2 says amounts were billed. You have to check the box as to whether the bill includes the spring 2011 semester. You ahve to get a transcript of payments.

[JON]

Can you get anything

if you have not paid a thing?????

[BP.]

if you have not paid a thing?????

Yes, if it was borrowed funds (Sallie Mae) This concept mystifies clients . . .

[taxmom34]

i used to tell my clients that loans are the same as cash that you paid for eduction.

[JON]

If the

college gets money from Sallie Mae or any long sources the college puts those amounts in Box 1. However, they are paid from loans or savings goes into box 1 in my experience.

How about the rest of you....

[FEDUKE404]

Box 1?

college gets money from Sallie Mae or any long sources the college puts those amounts in Box 1. However, they are paid from loans or savings goes into box 1 in my experience.

How about the rest of you....

I've seen a bunch of Forms 1098-T.

So far, not a single one has had any entry in Box 1.

Generally speaking, other than administrative stuff, the only boxes with amounts are Box 1 and Box 5.

And as others have explained, a "loan" is basically the same thing as a payment. Scholarships/grants are in a different category.

FE

[S T]

2010 Form 1098T

I don't believe for 2010 I have yet to see Box 1 completed on the Form 1098T, it seems like the only info that is being issued is Box2 - amt billed and maybe box 5 - Scholarship amt.

I really don't see the useful purpose in this form that was devised. I have spent "countless" hours trying to obtain add'l information from the Taxpayer, and the Taxypayer is also frustrated.

Sandy

[Black Bart]

1098t

A few years ago I'd see them with a Box 1 figure -- but no more; nowadays it's just Box 2 "billed" amount and that's that.

Yeah, you can get off what's paid no matter by whom (loan or student), but who's to say what that amount was? The client doesn't know, I don't know, and the grad student handling the stuff (one asked me to mail her a Pub 970) doesn't know. Transcripts are handy, but gettin' one depends on who's clerkin' that day ("Do you feel lucky, punk?" Well, do ya?")

I've about thrown in the towel on these and will take (pick one) (1) the right/real answer (rarer than unicorns) (2) whatever payment records they can round up (3) client's best guess (4) billed amount (5) my best guess.

Best thing about 1098-Ts is that IRS/schools/nobody seems to take the figures seriously because they're so often wrong. Almost anything you use will fly.

[BP.]

Box2 - amt billed and maybe box 5 - Scholarship amt.

Seems like the trend this yr.

[JON]

I did

have one like that. I think I agree with you guys. I really wonder what will happen on the CPs now that we get what is paid from our clients?????

[snowshine]

If they get a CP then I have kept a bursers account statement on file! Really, I haven't seen 1 accurate 1098-T this year, so I make everyone get a statement.

[JON]

I agree

with the above now - U of MO freshman only box 2, I think we should ask for a few more regulations. I think we reached ridiculous 20 years ago and now we have gone to some other level.

You guys are right - 1099Ts are worthless. Now we hope the IRS knows.