AOC - Check Date vs Receipt Date

[Kram BergGold]

My feeling is if you mail a tuition check to the University on 12/30/17 and they post it on 1/3/18 that you claim it in 2017. Does anyone disagree?

[ttbtaxes]

People can be their own worst enemy. For a whopping $2 they could have mailed it by certified mail and had their ticket for the ride. Without it, they can hold their breath and just hope.

I'd rather look forward confidently than ride the edge of a razor blade.

[kathyc2]

If the IRS questions the tax credit, they will look at bursar statement of payments. Since the bursar statement would show January, IRS may or may not accept that payment was made in December.

If I believed the client that they actually mailed it in December, I would go ahead and claim it for 2017, but let the client know that if the IRS pulls their return to question the credit it may or not be allowed. Chances that their return will be questioned is small, and probably then 50/50 if allowed of not if return is questioned. Then let them know in the future to pay in such a way that it's posted to bursar account in the year that they want it to be.

[taxea]

In theory, you are correct.

But in practice, you are automatically opening a huge can of confused worms, to include which amounts are transferred to which calendar year's Form 1098-T.

Ways to resolve: Pay (with a check, plus proof of mailing etc) earlier in December, or just use a credit card payment on 12/30/2017.

But, either way, if you push things too far that just mucks up the work involved for college tax credits and reconciling the Forms 1098-T with "the facts."

FE

I agree. Check date means nothing if mailed date cannot be documented.