Education Credit

[Bird Legs]

Daughter is going to college. Receives a 1098-T.
Box 1 - blank; Box 2 Amounts billed $5946. Box 4 Scholarships or grants $2025.
on the Back side in part 2 Credits to your Account it has: Scholarships & grants $2025.
Financial Aid (Out of Pocket) $3313. All other payments $0.
Refunds $1841.
What would be the amount mother can take as education credit on her 1040?

Thanks for your input.

[Bill Tubbs]

Best information available...

Daughter is going to college. Receives a 1098-T.
Box 1 - blank; Box 2 Amounts billed $5946. Box 4 Scholarships or grants $2025.
on the Back side in part 2 Credits to your Account it has: Scholarships & grants $2025.
Financial Aid (Out of Pocket) $3313. All other payments $0.
Refunds $1841.
What would be the amount mother can take as education credit on her 1040?

First, the tuition credits are supposed to be based on amounts WHEN PAID. But, since you apparently don't have that info, guess you'll have to go by the amount billed, and hope it was paid in 2005 (which is what I would do) -- clients are too clueless generally to come up with better figures.

That said.. according to the instructions, Box 7 = "Reimbursements or Refunds FROM AN INSURANCE CONTRACT". Huh?

The most conservative route is: $5946 - $2025 - $1841 = $2080 If this is for Hope Credit, you're above $2000, move on. If not Hope Credit, perhaps someone else will have more experience with the Box 7.

Bill

[Bird Legs]

Thanks

Bill, just need some feedback periodically.

[Koss]

Form 1098-T

Daughter is going to college. Receives a 1098-T.
Box 1 - blank; Box 2 Amounts billed $5946. Box 4 Scholarships or grants $2025.
on the Back side in part 2 Credits to your Account it has: Scholarships & grants $2025.
Financial Aid (Out of Pocket) $3313. All other payments $0.
Refunds $1841.
What would be the amount mother can take as education credit on her 1040?

Thanks for your input.

Figures on the back are not part of the IRS form. The form only has one side. The information on the back is internal data from the student's account at the school. This information is not reported to the IRS.

What you are looking at is similar to the supplements that sometimes come with a 1099-B, which may provide the basis for the securities sold, or the back side of a 1098, which sometimes has the date of each and every mortgage payment, with the principal, interest and escrow allocation.

It may not be possible to interpret this data without additional information from the school. This student have received scholarships and grants which exceed the amount of the tuition and qualified expenses. If this is the case, then no education credit is allowed.

Burton

[Koss]

Box 7?

First, the tuition credits are supposed to be based on amounts WHEN PAID. But, since you apparently don't have that info, guess you'll have to go by the amount billed, and hope it was paid in 2005 (which is what I would do) -- clients are too clueless generally to come up with better figures.

That said.. according to the instructions, Box 7 = "Reimbursements or Refunds FROM AN INSURANCE CONTRACT". Huh?

The most conservative route is: $5946 - $2025 - $1841 = $2080 If this is for Hope Credit, you're above $2000, move on. If not Hope Credit, perhaps someone else will have more experience with the Box 7.

Bill

The original post says nothing about Box 7.

[Bill Tubbs]

Refunds

The original post says nothing about Box 7.

Where else would "Refunds" come from on a 1098-T, if not Box 7?

Bill

[Koss]

Where else would "Refunds" come from on a 1098-T, if not Box 7?

Bill

Below is the text of the original post:

Daughter is going to college. Receives a 1098-T.
Box 1 - blank; Box 2 Amounts billed $5946. Box 4 Scholarships or grants $2025.
on the Back side in part 2 Credits to your Account it has: Scholarships & grants $2025.
Financial Aid (Out of Pocket) $3313. All other payments $0.
Refunds $1841.

The Form 1098-T described in the original post does not have an entry in Box 7. It has entries only in Box 2 and Box 4.

As I stated in my first post in this thread, the data on "back side" is not part of Form 1098-T. There is no back side. To the extent that the form has a reverse side, it contains only instructions for the recipient. The data from the "back side" that is cited in the original post has no box numbers associated with it. It is supplemental information that is not part of the IRS form. See my earlier post. The "refund" refers to a refund check issued by the school to the student because the student's account had a credit balance. The figure is meaningless. It's like closing your checking account and getting a cashier's check for the remaining balance. That amount does not represent a scholarship or a qualified expense. It is a mathematical artifact.

Burton

Mmm... just noticed that my "earlier post" is below this thread because I entered it as a response to the original post instead of a response to your post.

[Bill Tubbs]

My bad...

As I stated in my first post in this thread, the data on "back side" is not part of Form 1098-T.

Didn't catch that the refund was a "back side" notation. So, all my posts in this thread are worthless then...

Looks like I just proved I'm human.

Bill