I just wanted to be sure I do this right because the school records of payments and the 1098-T are so different! The credit is for amount paid in 2010 right? Should I try to decipher what the payment was for or just go on paid? Everything I'm seeing says "paid". Just double checking though, I used to follow the 1098-T until I saw so much on this board about them being a worthless piece of paper. I had a hard time deciphering things from this college, but the payments were clear, wanted to go by that! Of course I know grants are subtracted and loaned money is paid. Thanks!
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Now I'm seeing something from the IRS that tell me that payments for 2010 and first 3 months of 2011 paid in 2010 qualify. So I guess I need to look closer. When I was looking at some of the information I was VERY confused with what the college called "refunds". The T/P explained that he had to pay the amounts first and it was refunded to him when the loan was applied for that amount. I could see on the payment screen that he was telling me correct and the "refunds" on the other screen were always the exact amounts of the payments, no more. So am I right that those aren't subtracted from his credit (paid with loaned money) as I think I'm understanding the IRS pub to say???? -
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Am I ok to just print the screen from the college called "payments" and subtract Pell Grants and forget about that screen that said "refunds" that were exact amounts of payments with Loaned money? Because I'm leaning that way, I'm sure the payments were for 2010 expenses. Thanks!!!!Comment
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It appears from your post information given that you are handling it correctly. If he paid it, then was refunded the money because loans came in, it is still deductible by the TP, as he is responsible for paying the loans. And yes, expenses paid in 2010 for the 2011 spring semester are deductible in the year paid.Comment
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Thanks so much!!
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Just a funny side note, had a T/P call me that was checking for the 4 years of hope or American opportunity with mom, "mom said there's no such thing as hope now, so...."
Me: "She's right, the hope is now the American Opportunity Credit"
T/P: "She's 90% sure I can't take it this year"
Me thinking....shouldn't she be 100% sure of the 4 years? Oh well, we'll do the lifetime learning credit, his money not mine!Comment
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