Discussion:1098-T Again
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Discussion Forum Index --> Tax Questions --> 1098-T Again
| 12 March 2008 | |
| I know this subject has been talked about and talked about, and I am really reading some inconsistant opinions.
I have a client with a 1098-T that has $6245.00 in box 2 and $3600 in box 5. Following through with pro-series I just enter the figures where it asks for them. It ends up netting the two figures, which is exactly what I feel is correct, and makes since. However, my clients went to another tax service prior to coming to me but didn't like the price so left. The other preparer came up with a better refund then I, in the exact amount that it would be if I used the $6245.00 as tuition and ignored the scholarship amount. I did it correct, right. This is a cut and dry tuition, no room and board, just an adult going back to graduate school. Gail | |
| 12 March 2008 | |
| Gail -
I think you are correct. In addition if box 5 exceeded box 2, the client would probably have to recognize the excess as income. --Allan | |
Ksnoopytax (talk|edits) said: | 13 March 2008 |
| Did you do it correctly? I would need more information. Box 2 of Form 1098-T reports amounts billed for tuition and related expenses, not amounts paid. You would need to compare what's on Form 1098-T to what they actually paid during the year. Sometimes box 7 will be checked if box 2 includes amounts for the spring semester of 2008. However, from the surface it sounds like you did it correctly. You would take tuition and net against it any tax-free assistance such as scholarships to come up with your amount to determine your credit/deduction. | |
| 13 March 2008 | |
| Yes you did it correct.
Tell him the other guy was charging him less because he didn't know what he was getting. This is a very easy item for the IRS to Audit and he can buy his way into an Audit if he wants. | |
