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1098 -T question

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  •  jpa 
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    I graduated from med school in May 2018 (so would have been in school from January 1st–May 5th 2018). My medical school is claiming the last payment was submitted in December 2017, therefore there is no qualifying tuition payment for a 2018 1098-T.   I have a friend who claims that I should still be able to count the prorated amount that would have been for those 4 months in 2018, but I don’t know if this is true and if true, where to find the appropriate documentation.

    Any thoughts?  My wife and I both work, so this could save us a ton of money if true. Thanks!

    #189763 Reply
     Larry Ragman 
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    Joined: 08/30/2018

    The IRS specifically changed the rules on the 1098T last year. Previously the form reported billing, so you could claim you paid across the academic year. For 2018 and on, it reports what was actually paid in that year towards qualified tuition and fees. Look at the form itself. I think it is block 7, but regardless, it will tell you if you actually paid any money in 2018. If not, then no credit.

    #189768 Reply
     docnews 
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    IRS accounting screwed me when they changed this in 2013 (when the school claims we paid tuition in dec for the spring). Still attempted to claim and IRS came a calling. Minor fee (like a cheap loan for quite some time) but still feel it was a scam to save the government money.

    #189775 Reply
     Larry Ragman 
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    Yes, this is an easy auto check for the IRS. Your claim is matched directly to the 1098T. If it says none, don’t claim.

    #189776 Reply
    Liked by docnews
     Sigrid 
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    My med school also claims that they billed me in December (which according to my records is a big fat lie, but whatever) but they did not check box 7 on the 1098T, “does any of this money cover the academic period starting Jan-March 2018”. Do I have any recourse to argue that I paid the tuition in 2018? I’m guessing not, but it’s very frustrating.

    #189831 Reply
    jfoxcpacfp jfoxcpacfp 
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    Status: Financial Advisor, Accountant, Small Business Owner
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    Joined: 01/09/2016

    My med school also claims that they billed me in December (which according to my records is a big fat lie, but whatever) but they did not check box 7 on the 1098T, “does any of this money cover the academic period starting Jan-March 2018”. Do I have any recourse to argue that I paid the tuition in 2018? I’m guessing not, but it’s very frustrating.

    Click to expand…

    If you actually paid the tuition in 2018 and you have proof, I would claim it and provide substantiation when the IRS sends a notice.

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~ 270-247-0555
    https://fox-cpas.com/for-doctors-only/

    #189837 Reply
     Larry Ragman 
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    Joined: 08/30/2018
    Disability Insurance

    My med school also claims that they billed me in December (which according to my records is a big fat lie, but whatever) but they did not check box 7 on the 1098T, “does any of this money cover the academic period starting Jan-March 2018”. Do I have any recourse to argue that I paid the tuition in 2018? I’m guessing not, but it’s very frustrating.

    Click to expand…

    If you actually paid the tuition in 2018 and you have proof, I would claim it and provide substantiation when the IRS sends a notice.

    Click to expand…

    Absolutely. I won this fight with the IRS for my daughter coming out of her senior year. We had paid tuition in January, but the 1098T only said amount billed for the academic year and not when it was paid. IRS did a letter audit denying the claim, but I could prove she paid in January. (I had both checking records and the electronic record of payments from the college.) Only difference now is that the 1098T explicitly says what you paid in a given tax year. Harder to argue with unless they are literally wrong. If possible, and you have proof tuition was paid in 2018 not 2017, try to get the 1098T corrected. I’m with Johanna, I would claim it anyway if I could prove a 2018 payment, but it would go a lot easier if the med school would fix their records.

    #189858 Reply
    jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 6697
    Joined: 01/09/2016

    My med school also claims that they billed me in December (which according to my records is a big fat lie, but whatever) but they did not check box 7 on the 1098T, “does any of this money cover the academic period starting Jan-March 2018”. Do I have any recourse to argue that I paid the tuition in 2018? I’m guessing not, but it’s very frustrating.

    Click to expand…

    If you actually paid the tuition in 2018 and you have proof, I would claim it and provide substantiation when the IRS sends a notice.

    Click to expand…

    Absolutely. I won this fight with the IRS for my daughter coming out of her senior year. We had paid tuition in January, but the 1098T only said amount billed for the academic year and not when it was paid. IRS did a letter audit denying the claim, but I could prove she paid in January. (I had both checking records and the electronic record of payments from the college.) Only difference now is that the 1098T explicitly says what you paid in a given tax year. Harder to argue with unless they are literally wrong. If possible, and you have proof tuition was paid in 2018 not 2017, try to get the 1098T corrected. I’m with Johanna, I would claim it anyway if I could prove a 2018 payment, but it would go a lot easier if the med school would fix their records.

    Click to expand…

    Yes, we’ve seen many incorrect 1098-T’s and typically just go ahead and report them as they should have been reported. Can be difficult to get the school to correct.

    Almost as hard as it is to pull employee retirement information out of hospital HR departments. grrrrrrr.

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~ 270-247-0555
    https://fox-cpas.com/for-doctors-only/

    #189870 Reply
     Sigrid 
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    Joined: 04/01/2018

    I’ll give it my best shot, but given my school’s track record of fixing ANY kind of bureaucratic f*up, let alone one involving money, I’m not holding my breath. *sigh*

    #189903 Reply
     Murgency 
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    Joined: 09/27/2017

    Same situation.  I pulled up my 2017 1098 and the school had checked the box that “part of the amount was for spring 2018”.  Not sure what recourse that gives me since I used that 1098 for my 2017 taxes.  Can I go back and then claim part of that amount to be applied to 2018–the year it was actually paid?

    #190817 Reply
     Larry Ragman 
    Participant
    Status: Other Professional
    Posts: 361
    Joined: 08/30/2018

    Murgency, sure, as long as you can show you that some part was actually paid in January or later you can use the same 1098T for 2018. Also, check that the box was checked to say this 1098T represented what was billed, not what was paid.

    #190866 Reply

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