1098-t

[cipparulo12345]

Client gave me a 1098-T. Box 1 Payments made for tuition is $15,610. Box 5 Scholarships & Grants is $15,076. Box 6 Adjustments to Scholarships & Grants for a prior year is $2,076.

What amount should I use as the eligible amount for the American Opportunity Credit? I seems it should be $534.

Client is confused because she says she makes monthly payments for the tuition. She checked with the College Bursar Office and the office said the amounts are correct. But the Bursar Office said the $15,076 is made up of $13,000 plus a prior year adjustment of $2,076 so now it is one of those cases where I am more confused by trying to get more information.

[Lion]

Get the Bursar's statement that contains dates and amounts.

[cipparulo12345]

good idea. I am really thrown by the $2,076. That is suppose to be adjustment for the prior year. According to the Bursar Office response it is in with the current year $15,076.

[Rapid Robert]

"That is suppose to be adjustment for the prior year."

It is. I believe the only way to correct for it is to file an amended return. The IRS form instructions will probably confirm this if you search. (either 1098-T, or Education Credit form in the 1040)