Form 1098-T (tuition statement)

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  • #17580
    DABU1989
    Participant

    Dear All,

    We will be claiming our daughter as a dependent on our tax return in 2020. She is a full-time student (freshman) at a state university and as parents provided more than 50% of her support. The university has sent Form 1098-T (tuition statement) to my daughter. The Box 1 has “payments received for qualified tuition and related expenses.”

    I contacted the university bursar about what is considered for Box 1 and they indicated to me that it does not include other educational expenses like student activity fee, books, and other compulsory fees that are mandatory for a full-time student.

    But the IRS indicates, “Qualified Education Expenses for Education Credits: Eligible expenses also include student activity fees you are required to pay to enroll or attend the school. For example, an activity fee that all students are required to pay to fund all on-campus student organizations and activities.”

    My question is, can I “add” eligible education expenses allowed by the IRS to the Box 1 amount provided by the university. As a result, “the amount in Box 1 will be different than the tax information furnished to the IRS by the university.” Please provide your comments and suggestions. Thanks for your help. With regards, Dabu.

    #19691
    ruth
    Participant

    You can add eligible expenses you paid that are not included in Box 1 of Form 1098-T. IRS states that the amount shown on Form 1098-T may differ from the amount you paid. Here’s relevant information from page 20 of IRS Publication 970.

    Form 1098-T. To help you figure your American opportunity credit, the student may receive Form 1098-T, Tuition Statement. Generally, an eligible educational institution (such as a college or university) must send Form 1098-T (or acceptable substitute) to each enrolled student by February 1, 2021 (January 31 falls on a Sunday). An institution will report payments received (box 1) for qualified education expenses. However, the amount on Form 1098-T might be different from what you paid. When figuring the credit, use only the amounts you paid or are deemed to have paid in 2020 for qualified education expenses.

    #20905
    DABU1989
    Participant

    Thank you Ruth for your detailed reply. I appreciate it. With regards, Dabu.

    #21018
    dienerte
    Participant

    Dabu – Since you did not mention any scholarships/grants your daughter might have received, I assume there are none that might affect the calculation and reporting of qualified educational expenses and/or taxable income.

    #21213
    DABU1989
    Participant

    Thank you Dienerte for your reply. My daughter has received a scholarship and the amount is mentioned in Box 5 under scholarships and grants in the Form 1098-T. Will the scholarship affect the calculation and reporting of qualified educational expenses? Please let me know. With regards, Dabu.

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