A taxpayer's qualifying child was a student who received a 2017 Form 1098-T with nothing filled in for Box 1 and a zero amount filled in for Box 2. He was at least a half-time student. An amount was paid during the first three months of 2017, but it was included on the 2016 Form 1098-T. The student though did not actually graduate until May of 2017. Is this 2017 Form 1098-T incorrect? What should I do in this situation?
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Facts trump forms. Probably the amount was billed in 2016 but not paid until 2017. That doesn't make the 1098-T wrong, assuming they are using the amounts billed in box 2. Thus I would treat the 2017 payment as a 2017 payment. If I didn't do the 2016 return I'd probably check to make sure they didn't include the 2017 payment on the 2016 return as well. -
Bursar's statement. Documents from parents and student detailing who paid what. when, and how. The Form 1098-T tells you little except that the student was a student, at least half-time, graduate student or not. It won't tell you much about payments. I have heard of some with Box 1 but not seen such a unicorn yet. I do see a few with the bursar's detail by calendar year on the back. Ask your client.Comment
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I had a 1098T this year that the top part of the page was the 1098T and the bottom part had a breakdown per year. Kind of nice.Comment
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Your software should have a place to enter the amount actually paid, if it is different than what Box 2 says.Originally posted by Tax Sleuth View Post
Let the client know it is very possible they will receive an IRS notice denying the credit, and they just need to send proof of the payment (such as a printout of the financial account from the college showing what was paid in 2017).Comment
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