Education Credit Worksheet

[ILLMAS]

ATX has a worksheet that looks like form 1098-T, however there is no box 2, to enter amount billed for qualified tuition and related expenses. Can it be entered in box 1 instead?

Thanks

MAS

[Lion EA]

If you're using a worksheet to calculate an education credit, it's going to be based on what your client PAID and spent during 2013 or the year in question. It really doesn't matter what the college billed, except that you can pay only one semester ahead into the next calendar year. Ask your client for their financial transcript from the bursar's office, often available online to the student, and even printed on the backs of some Forms 1098-T or on a statement in the same mailing. Or, have your client go through their check registers.

[Janitor Bob]

I'm pretty sure that the credit is only concerned with what was PAID in 2013...so there really is no need for two entries on the worksheet....and you cannot totally rely on the 1098-T to tell you that....in many cases the boxes on the 1098 do not correlate exactly to the amount paid. Some schools put the amount that was actually paid in box 1...but many others (such as my daughter's school) lump everything into box 2...nothing in box 1....I paid almost the entire amount of box 2, but not all...some of it was billed in 2013, but I did not actually pay it until last month....so that portion will be for next tax year. Alternatively, there were amounts that I paid in January 2013 that were actually billed in 2012...so those amounts do not appear in box 2 this year.

So in the end, you need to rely on the client to know how much they actually PAID in 2013 and deduct from that the amount of scholarship& grants listed on the 1098 to come up with the amount to enter on the worksheet. The parent or student should be able to support that with school account statements or something.

[Jack from Ohio]

JB has it NAILED!!

[ILLMAS]

Thanks I will request them to provide me with a summary of the actual payments for 2013 including payments from student loans.

MAS

[clay]

Get the DETAILS, not a summary.

Not all expenses qualify for the credit

[Jack from Ohio]

Get the DETAILS, not a summary.

Not all expenses qualify for the credit

AGREE!!!