American Opportunity Credit

[Christian]

I have client's whose kids attend college and whose tuition is fully paid by grants or scholarships. Their parents sometimes pay for books and supplies they need. The college does not provide a 1098-T for these expenses. I note on the ATX form there are line entries for these expenses and am wondering if I fill in the form not showing any expenses in lines 1 or 2 if the credit will then be computed on these other entries. Can anyone advise ?

[Pacun]

The two main credits ask you for 1098-t so, I doubt you will be able to get the one of those credits without the U sending the form.

 

[B. Jani]

Now so many schools don't mail forms. ask kid if it is available on online account.

[Christian]

You have addressed my concern Pacun. Without a Form 1098-T from the college and no amounts in box 1 or 2 of the ATX form I doubt it will compute a credit even though the law clearly provides that payments for books and supplies by a parent qualify for the credit. My thought was someone might have run into this as well and could advise if what I had in mind worked. I'll find out when I give it a try.

[Catherine]

Get a printout from the Bursar's Office of actual charges and payments in 2016 to see what really happened.  I have seen several 1098-T's with NOTHING in Box 1 but scholarships listed - but the Bursar's Office statement clearly shows charges for tuition and other fees, scholarships, and payments.  Those forms (in my experience) have a tenuous connection with reality.

[jklcpa]

Catherine is right. We still need to make sure of what the school has included in the numbers on the 1098T.  The last one that I saw had some expenses included that do not qualify to be included in the calculations for any of the credits.