Discussion:1098-T and education credit
From TaxAlmanac
Discussion Forum Index --> Advanced Tax Questions --> 1098-T and education credit
Discussion Forum Index --> Tax Questions --> 1098-T and education credit
| 11 April 2008 | |
| Suppose my client graduated from college in May of 2007. The school did not issue a 1098-T because the school billed Spring 2007 tuition in December of 2006 and supposedly puts the expense on the 2006 1098-T.
My client paid the tuition in Jan of 2007, for the Spring 2007 semester which is from Jan 20 - May 20 of 2007. Are the educational expenses allowed toward the educational credit? What if the client paid the tuition with a loan that was disbursed in Dec of 2006 (still for the Spring 2007 semester)? Finally, without a 1098-T, is this an big audit risk? | |
| 11 April 2008 | |
| I actually just went through this myself.
School billed me for Spr 2007 tuition late 2006. It was on my 1098-T as "tuition billed" Hence my surprise when I didn't get a 1098-T for 2007. ex) Lifetime Learning credit clearly stipulates it is based on date PAID, which was disbursed from Sallie Mae on 1/4/07. I got copies of my billing statement from the school to prove it as well.
| |
| 12 April 2008 | |
| Thanks for the response. I'm fairly comfortable claiming the credit if the bill was paid in 2007, but even if paid in December of 2006, I feel the credit should still be allowed - these two people are essentially in the same position, why shouldn't they be taxed in the same manner? | |
| 12 April 2008 | |
| "should" and "feel" isn't a valid defense against an audit, even though I do agree with you (since I was almost in that exact position) | |
