What if 1098 t is wrong

In January of each year, National-Louis University mails an IRS Form T to all students who had qualified tuition and other related educational expenses billed to them during the previous calendar year. This form is informational only and should not be considered as tax opinion or advice. Receipt of Form T does not indicate eligibility for the tax credit.

To determine the amount of qualified tuition and fees paid, and the amount of scholarships and grants received, a taxpayer should use their own financial records. NOTE: It is up to each taxpayer to determine eligibility for the credits and how to calculate them. Section S of the Internal Revenue Code, as enacted by the Taxpayer Relief Act of , requires institutions to file information returns to assist taxpayers and the Internal Revenue Service in determining eligibility for the Hope and Lifetime Learning education tax credits.

Forms are mailed at the end of January of each year for the previous tax year. The IRS instructs institutions to report either payments received Box 1 or amounts billed for qualified tuition and related expenses Box 2 on the T.

Once an institution has selected one of these options, they cannot change reporting methods between calendar years without IRS permission. NLU reports qualified tuition and related expenses that were billed during the tax year Box 2 and scholarships and grants, therefore, Box 1 — Payments Received for Qualified Tuition and Related Expenses, will be blank.

Most of the information needed must come from the student's personal financial records of what the student paid during the calendar year. Additionally, each taxpayer and his or her tax advisor must make the final determination of qualifying expenses. Not all students who pay qualified expenses are eligible for a tax credit. For example, both credits have an income cap. Chapter 35 of IRS Publication 17 provides a very clear explanation of the eligibility requirements and filing instructions for the Hope Credit and the Lifetime Learning Credit.

It can help you calculate two potentially valuable education credits — the American opportunity tax credit and the lifetime learning credit. That could trigger a notice from the IRS. Instead, evaluate the best way to apply potential credits before filling out your federal returns. The information on your T could help you claim valuable education credits.

You can learn more about tax benefits for education in IRS Publication She has accounting degrees and certifications from Clemson University and the U. Career Institute. You can find her on LinkedIn. Image: College student standing in the hallway, holding her books and smiling. Stated another way, the amounts reported on personal tax returns may not align with the amounts reported on Form T. This is due to how educational institutions are required to report amounts on the Form T, which changed under federal law beginning with tax year Your student account activity should be used to supplement the Form T and assist with determining eligibility for education tax credits.

The amount used for claiming education are qualified education expenses you actually paid to the school in which should be shown in box 1. If your box 1 does not show the correct amount paid, when filling out your form T in TurboTax, leave it blank on the entry screen.

Under box 1, on the T screen is a blue link: What if this is not what student name paid to this school? Click on that and you will be given a chance to enter what was actually paid in View solution in original post. Go through the entire education interview until you reach a screen titled "Your Education Expenses Summary".

Click edit next to the student's name. You only care about what you paid. Ignore this box. If it reduces your education credit claimed in the prior year, no amended return is required.

If there is an adjustment, it is incumbent upon you to pay back the excess. These generally reduce your payments to the college.