1098-T ?

[Eli]

Student has a 1098-T showing Box 2=$1992

Box 5 = $14,260

She says she used all of the money for school purposes. Is this something that should be included as income or just take her word for it and leave it as is?

Thanks!

Eli

P.S. this will be my last question for the night I promise!! :)

[Terry D EA]

Eli,

The 1098T form is for tuition paid either from a scholarship, grant, student, or parents etc. This is not income to your client but a deduction. You need to find out what year of college your client is in. The first two years of under grad work the hope credit can be used after that it is the life long learning credit. It is possible for the tuition and fees deduction as well. Box 2 is the number you add to the tax return regardless of who paid for it. Hope this helps.

Hope your season is going well

Terry D.

[ann newman]

I would explain the rules...depending in the school - it is possible that enrollment fees, books and equipment could run in excess of $10,000 - for instance a technical school, engineering/design or art school. Just be sure she knows room and board are not qualified expenses. I think an explanation and perhaps strongly suggesting she list out and track her qualified expense would fulfill your due diligence. Ann

[Eli]

Thanks to both of you for your responses.

Terry, things are going well. Keeping busy. Family doing well??

Eli