1098 T

[FEDUKE404]

This is standard practice

Now, this is obvious but why no amt in Box 1? Possible reasons:

1. Amt paid to employee and employee never paid college
2. Amt paid in 2011 to employee therefore will not appear on 2010 1098T (I was curious on this one. Is it then reported on employees 2010 tax return even thou its under the $5250 excludable taxable tuition reimbursement?)

Also, seems to me this $3510 shoud be reported within the form 1098T worksheet or statement as a reimbursement but upon looking at it, I see no line for "employer tution reimburement". How do you guy treat this?

The most logical explanation is that schools apparently NEVER bother to report "paid" but instead now report "billed." Doing so makes life much simpler for them, and IRS rules allow the school to choose which box it completes.

While there may be valid charges for a potential education credit, the fact that those charges were paid by someone other than the taxpayer (scholarship, employer, but NOT via loan) would offset any otherwise allowable charges that could be used.

Bottom line: If charges are correct, and employer paid them (or even paid them to the employee who actually paid the school), AND nothing shows up on W2 from that employer re reimbursement, I would (essentially) ignore the Form 1098-T and move onward. This assumes, of course, that you have the real facts at hand about school expenses and are not merely relying upon the essentially useless Form 1098-T.

FE

[AZ-Tax]

Box 2: $8210 Box 1: $0 W-2 YTD summary tution reimbursed: $3510

Now, this is obvious but why no amt in Box 1? Possible reasons:

1. Amt paid to employee and employee never paid college
2. Amt paid in 2011 to employee therefore will not appear on 2010 1098T (I was curious on this one. Is it then reported on employees 2010 tax return even thou its under the $5250 excludable taxable tuition reimbursement?)

Also, seems to me this $3510 shoud be reported within the form 1098T worksheet or statement as a reimbursement but upon looking at it, I see no line for "employer tution reimburement". How do you guy treat this?

[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.

[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 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?????

[BP.]

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

Seems like the trend this yr.

[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.

[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

[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

[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....

[taxmom34]

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

[BP.]

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

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

[JON]

Can you get anything

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

[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.

[RNuse09]

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