Box 2 1099t

[BOB W]

When box 1 is blank and box 2 shows 31,000 and schlorships are 12,500> where do we go from there?

Tuition is based on what is paid, either out of pocket or loans. 1099T is showing zero paid but this is not correct. More and more of these type of 1099T's are showing up. Does the clients have to search for the tuition part of their payments?????

[David1980]

I can't remember seeing a 1098T with box an amount in box 1 and box 2. I think it's an option for the school to do one or the other, and it's probably easier to just put a number in box 2 for billed rather than determining if the taxpayer paid it all in 2007 (especially if they are paying 2006 or 2008 amounts in 2007.)

So it's not that the school is saying the taxpayer didn't pay it, rather they're saying they don't know (or don't care to figure it out) if it was. So you would have to get that information outside of the 1098T. That could be a printout from the school of their accounting information for the year. It could be something you get from the taxpayer during your interview process.

To make things even more complex for you, box 2 may or may not include the amount paid by the scholarships/grants. Again, you need to find out from something other than the 1098T. And the scholarship may be used for some expenses that don't ever get reported into box 1 or 2 of the 1098T (for example required books, see Pub. 970 for the full list.)

So basically all you really have with a 1098T alone is the amount of scholarships and a "possible" amount for qualified education expenses (that may or may not be reduced if amounts paid by scholarships were or weren't included) to use on an education credit/deduction. Get the rest of the info you need somewhere else. But on the bright side, if it was as simple as typing numbers exactly off the form there'd be a lot fewer people paying tax preparers to do their taxes.

[BOB W]

So, the 1099T are useless except for the stated Scholarships.

[BP.]

So, the 1099T are useless except for the stated Scholarships.

Seems that way in some cases, huh? But the 1098T is useful for the checkbox "At least a halftime student." (Or whatever the exact language is. Hope requirement.)

[BOB W]

Seems that way in some cases, huh? But the 1098T is useful for the checkbox "At least a halftime student." (Or whatever the exact language is. Hope requirement.)

That too..........................