Education Credits

[S T]

Question -

Form 1098T issued in 2015 - of course was for "amounts billed" not payments - I have the transcript and accordingly entered credits for only amounts paid.

NO form 1098T for year 2016, as the Univ and Colleges seem to be no longer issuing for amounts paid.

Will be either Tuition and Fees Deduction or Lifetime Learning - already exhausted the AOC

We have a transcript that while SP 2016 was "billed" in Dec 2015, client did not pay until Jan 2016.

Tuition Paid far exceeds what can be deducted

Any issues with claiming either of the two Ed Deductions without a 1098T for 2016?

Thanks

Sandy

[taxea]

TP should have records of payments. Payments will always exceed the credit because the credit is limited. To determine which credit you should use read the instructions.

[RitaB]

You're ok

We have a transcript that while SP 2016 was "billed" in Dec 2015, client did not pay until Jan 2016...

Any issues with claiming either of the two Ed Deductions without a 1099-T for 2016?

See Question 20: https://www.irs.gov/individuals/educ...ns-and-answers

IRS may question the credit or deduction, but it won't be difficult to explain. Obviously keep copies of what you'll need to send in your reply to their letter, which would include the 2015 1098-T that has Box 7 checked indicating Box 2 includes 2016 billing.

[FEDUKE404]

Simplest answer

Ignore the darn Form 1098-T.

Work with the facts, namely what occurred from 01/01/2016 through 12/31/2016 to include payments (of qualifying expenses) and scholarships applied against same.

FE

[Will]

Question -

Form 1098T issued in 2015 - of course was for "amounts billed" not payments - I have the transcript and accordingly entered credits for only amounts paid.

NO form 1098T for year 2016, as the Univ and Colleges seem to be no longer issuing for amounts paid.


Any issues with claiming either of the two Ed Deductions without a 1098T for 2016?

Thanks

Sandy

I'm not sure why there was no 1098T received, but, if you are claiming the AOC, the new Due Diligence requirements for preparers require you to have one.

[FEDUKE404]

NO 2016 Form 1098-T ?

I'm not sure why there was no 1098T received, but, if you are claiming the AOC, the new Due Diligence requirements for preparers require you to have one.

How can you get a copy of a document that might not even exist in the first place?

From the scenario given, it is quite likely the 2016 costs ("billed") were reported on the 2015 Form 1098-T.

Sadly, NONE of the Forms 1098-T I saw this past tax season had anything in the "paid" box. The schools apparently can still take the easy way out. . .

FE

[RitaB]

From the original post

If we read the original post,

1) The AOC is exhausted.

2) Sandy knows how to figure the Lifetime Learning Credit or Tuition and Fees Deduction.

3) There is no 2016 1098-T because the billing occurred in 2015.

[S T]

Thanks for the information!

Sandy