1098 t box 7

[gman]

Taxpayer made payments in 2012 for tuition, but the total amount paid was included in prior year box 2 (2011 form 1098t) with box 7 checked. No 1098 T issued in 2012 at all. Can taxpayer take credit in year paid(2012) if all other qualifications are met?

Taxpayer was a dependent for 2011, but not 2012 and could use the credit. Parents did not claim credit in 2011.

[Kram BergGold]

Tuiiton

Tuition is utilized when paid. My software has a box to check when the tuition being claimed shows up on the prior year 1098- T form.
Make sure you have the proof of payment as there is an excellant chance the taxpayer will get a letter questioning the claim sometime down the road.

[FEDUKE404]

Student can claim

Basically ignore the Form 1098-T and file the 2012 tax return and allowable credited based upon the qualifying expenses (reduced by scholarships,etc.) that were **PAID** between 01/01/2012 and 12/31/2012 and (perhaps, somewhere) supported by a Form 1098-T.

From your explanation, it appears (some of) the 2012 expenses were shown as "billed" on the 2011 Form 1098-T (that is the intent of Box 2).

Why were the parents not claiming any education expenses???.......or did they in (some) prior year???

FE

[gman]

Letter

Thanks, taxpayer did recieve letter asking for payment verification. I contacted the school and they did tell me installment payments
were recieved in 2012. So hopefully I can get them to print something and forward that to the IRS.