Client came in with a 1098T for school.Amt. of tution was in box 2 ($1300).Also was checked that the amt. covered Jan-March of 06.Box 2 states that this amt was billed.Client said they had a student loan and this amt was paid.Can they take the $1300 that was spend on tution even though the 1098T is saying this amt was bill in box 2 and not box1.
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1098-t
I would take the deduction, as long as it is showed in Box 1 or 2, but not sure, maybe someone else knows. -
Yes, take the billed amount. If it was not paid the child would have been removed from the School. That's the was they deal with none Payments.
My student bill shows it in box 2 as billed amount, it is also the amount I paid.Comment
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1098-t
It's always a good idea to also check the statement from school, which breaks down all expenses and payments. Too many 1098-T's are not correct.Comment
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SWhen was it paid
The 1098T Form just alerts you that your client may have a credit or a deduction. You have to figure out in what year the payment was actually made. If it was paid in 2005 then take it. If it was not paid until 2006 then wait till next year. The only way to get this information is from a transcript from the school or a cancelled check from the client or both.Comment
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