Daughter Quit College After Fall Semester

[Christian]

A client's daughter who completed her first year of college in 2020 entered  for her second year in fall 2020. She dropped out  in late December. In speaking with her mother she advised the university did not send any tuition info. They evidently spent a not inconsiderable amount on her but I know of no way they qualify for any education credit. She plans on reenrolling this fall but this will only create the possibility of getting a credit if she completes the full year. If anyone knows anything different from what my understanding is on this please advise.

 

[joanmcq]

She only needs the one semester to qualify for the credit.  Whether its worth it or not to take the AOTC or not is up to you & the client.

[Christian]

 

I asked if the university furnished a 1098-T but the mother advised no. How would the parents prove the costs and the half year student requirement other than through personal checks ? 

[Lion EA]

Bursar's statement will have dates and amounts.

[Gail in Virginia]

I find with a lot of my clients that they university/college does not "furnish" the 1098T, the student must go online to their account and print the form.  Did the parents actually check or is this just an "I did not get it in the mail so it doesn't exist" situation. 

[TexTaxToo]

16 hours ago, Christian said:

A client's daughter who completed her first year of college in 2020 entered  for her second year in fall 2020. She dropped out  in late December.

It's not clear from your first post which year's return you are preparing.  Maybe I'm reading it wrong, but if the daughter dropped out in Dec. 2020, then there would be no expenses in 2021 - and no credit or 1098-T for TY2021.

They would qualify for TY2020 for expenses paid in 2020 for the 2020 fall semester (if not refunded).  They could qualify again in 2022 for the fall semester if she re-enrolls.

[Christian]

I am preparing the 2021 return. Basically the daughter entered university in September 2020 and after Christmas leave did not return.  For years I have had as a client an account who worked at a local university. Some time back I had a question about the college year. He explained that even though a student entered in September the college year would be  the following year for the 1098-Ts. With regard to this particular situation I expect I will need the Bursar's statement as noted above. Gail you are spot on as I too have run into this. Many times the students are unaware of this fact. I sometimes wonder if they are even advised of the fact it is online. Many thanks to all who have replied.

[Margaret CPA in OH]

Every 1098-T I have seen is for a calendar year.  Box 7 even has a possible check if the Box 1 amounts received include amounts for an academic period beginning the following January-March.  I think you other source is mistaken.  TexTaxToo is correct.  Maybe look at the copy of the 2020 1098-T for reference.