I have a 1098-T, but the taxpayer has an adjustment amount in box 4.....Do i take the qualified tuition and fees amount and subtract out the adjustment amount for the 2011 tax return?
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For a prior year? The instructions say to refigure the tax for the prior year subtracted the adjustment. Then you put the extra tax on this year's return. Line 44 with a designation that starts with a C.Your software will no doubt have a line for that..JG -
I have a client's 2011 1098-T with an adjustment amount in box 4. All other boxes are blank.
The adjustment was reported because the school refunded the client's employer 2010 tuition that wasn't used.
Client received a 2010 1098-T and did not report any of the tuition on her tax return as it was paid 100% by her employer.
I did not report anything from this 1098-T on her 2011 return, as nothing from the 2010 1098-T was reported.
She did pay for tuition and took the AOC in 2009.
Any opinions on whether there will be any fallout from this?Comment
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If your client didn't receive the refund it should be fine. Wouldn't the employer get it back?
Fallout? Probably not. I had fallout in a different way. One year I did the above and the IRS sent the taxpayer back the moneyof the additional tax because they thought I had computed the tax wrong!! The client wasn't willing to fight them to get them to take the money.JGComment
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