Tuition 1098 t box 7

[JenMO]

States tuition paid for next semester. Does the TP have to claim that amount, or can he wait until 2011 and claim that tuition? I have a statement which itemizes the amounts.

[Koss]

Can't postpone it

The credit is driven primarily by the year in which the tuition was actually paid.

See Publication 17, page 230:

Who Can Claim an Education Credit

You may be able to claim an education credit if you, your spouse, or a dependent you claim on your tax return was a student enrolled at or attending an eligible educational institution. The credits are based on the amount of qualified education expenses paid for the student in 2010 for academic periods beginning in 2010 and in the first 3 months of 2011.

For example, if you paid $1,500 in December 2010 for qualified tuition for the spring 2011 semester beginning in January 2011, you may be able to use that $1,500 in figuring your 2010 education credit(s).

[b]Caution![b/]
You cannot use any amount paid in 2009 or 2011 to figure your 2010 education credit(s).

So, when you do their tax return for 2011, this section of Pub. 17 will say:

You cannot use any amount paid in 2010 or 2012 to figure your 2011 education credit(s).

BMK

[FEDUKE404]

Answer

States tuition paid for next semester. Does the TP have to claim that amount, or can he wait until 2011 and claim that tuition? I have a statement which itemizes the amounts.

If you have a Form 1098-T with amount PAID entered, I will be shocked.

The taxpayer never has to "claim" anything, but otherwise ignore the Form 1098-T and see when the tuition was actually paid...and remember that, at some point, will have to be offset by any scholarships/grants received.

FE

[JenMO]

I only used the part for 2010, because it didn't generate any more credit because of his tax liab. too, bad. He paid for with loans, too. Well, I'll wait til next year and see if it says the same. Thanks

[Dusty2004]

For the most part

States tuition paid for next semester. Does the TP have to claim that amount, or can he wait until 2011 and claim that tuition? I have a statement which itemizes the amounts.

I find it is most beneficial to use what the client actually paid than what the college said was billed. I ask all my parents to bring the detailed statement from the college and to bring their book / supplies / computer purchases.

Dusty

[RitaB]

Payment Date

States tuition paid for next semester. Does the TP have to claim that amount, or can he wait until 2011 and claim that tuition? I have a statement which itemizes the amounts.

If the payment was made in 2010, you can only claim it on the 2010 return.

See TTB 12-3: "Credit is allowed for expenses paid in 2010 for an academic period beginning in 2010 or [beginning] in the first three months of 2011."


I would love to make "paid in 2010" bold, but, alas, I know not how.

[FEDUKE404]

Confusion

I only used the part for 2010, because it didn't generate any more credit because of his tax liab. too, bad. He paid for with loans, too. Well, I'll wait til next year and see if it says the same. Thanks

Huh??

Paying for expenses with loans IS considered, well, making a payment............

FE

[taxmom34]

how old is this client? and can client be claimed on parents return.? i question this because you posted that tax liability was low and too bad that credit was lost?

i don't remember what is in box 7 of the 1098T but if its the billed amount, we all here ignore that and use the student's account statement

[BP.]

I only used the part for 2010, because it didn't generate any more credit because of his tax liab.

Don't know your specific numbers, or which educ credit used, but worth noting that AOC actually may generate a credit (refundable) that is in excess of tax liability.

[Burke]

One thing I am telling all my clients is, don't pay that tuition in advance for the spring semester if the child is in his senior year. They mostly max out anyway without counting it, and that allows that last semester payment to be in the following tax year, eligible for credit.