Recieved 1098-T from College for 2015. I didn't attend in 2015.

[Dreyth]

I entered College in 2010. I graduated in 2014. That means my final year was 2013-2014. I received a 1098-T form for each of those years (5 total) and did what I was supposed to do in terms of filing taxes. For those 4 school years I received a mixture of scholarships, grants, and paid some tuition.

I applied for a Master's Degree from the same college that was supposed to begin on Jan 2015 and end Dec 2015 (one year degree). I received the bill for the first trimester, but then I deferred and waited for the second semester. In the second semester, again they asked me if I was entering. I deferred again to the beginning of 2016 (I am now enrolled).

Here is the 1098-T form. I have removed personal and school info.


They said I paid $12,690 (12 of 30 credits) when I actually paid $0 because I did not enroll in the program at all. I was accepted, but did not enroll. THIS YEAR, however, in Jan 2016, I have officially enrolled and will end up paying about $28k (30 credits) total for the year and graduate in Dec 2016.

What should I do about this? Should I contact my college to correct it? Is it too late? Is it better if I don't? What happens down the road when I receive a 1098-T for 2016 in the future?

[johnny847]

The 1098-T looks correct to me, because it has box 7 checked, which says that this includes amounts for an academic period beginning January - March 2016.

To claim educational expenses for deductions and credits, you have to have PAID them in the tax year in question, not get billed them. So you should not be claiming any of these expenses for the 2015 tax year.

[Dreyth]

The 1098-T looks correct to me, because it has box 7 checked, which says that this includes amounts for an academic period beginning January - March 2016.

To claim educational expenses for deductions and credits, you have to have PAID them in the tax year in question, not get billed them. So you should not be claiming any of these expenses for the 2015 tax year.

I did not notice that. Thank you.

Another issue:

This year I was originally billed the aforementioned ~12k. However, I dropped a class. I am now paying only $9,600. Should I get this corrected or...

[johnny847]

This year I was originally billed the aforementioned ~12k. However, I dropped a class. I am now paying only $9,600. Should I get this corrected or...

Probably? Not sure about that. Fortunately it's not urgent, since this will affect 2016 taxes, not 2015.

[MDM]

This year I was originally billed the aforementioned ~12k. However, I dropped a class. I am now paying only $9,600. Should I get this corrected or...

Probably? Not sure about that. Fortunately it's not urgent, since this will affect 2016 taxes, not 2015.

+1

Just to reemphasize what johnny847 already said, it is the amount you paid in the tax year, not the amount you were billed, that matters to the IRS.

Note that it appears the 2016 1098-T reporting will be done differently - see http://www.naicu.edu/news_room/news_detail.asp?id=25254.

[teen persuasion]

This year I was originally billed the aforementioned ~12k. However, I dropped a class. I am now paying only $9,600. Should I get this corrected or...

Probably? Not sure about that. Fortunately it's not urgent, since this will affect 2016 taxes, not 2015.

+1

Just to reemphasize what johnny847 already said, it is the amount you paid in the tax year, not the amount you were billed, that matters to the IRS.

Note that it appears the 2016 1098-T reporting will be done differently - see http://www.naicu.edu/news_room/news_detail.asp?id=25254.

Thanks for passing on this info about the reporting change.  I've always been frustrated by the "billed" amounts, since they are meaningless.  Lots of changes in financial aid next year.