1098-T numbers do not match current amount paid to College

Forum|Forum|2 years ago
March 1, 2024
1 reply
0 views

My son's 2023 1098-T form from college:

box 1 - $51,908.

box 5 - $63,487.

box 5 total (scholarships for 3 terms) (winter=$20, 089 + spring=$20,089 + fall=$23309)

(2 out of pocket payments) = $9,918.52 (spring $4864 + fall $5054.52)

fed direct unsub loans = (winter$1814+spring$1815)

His student account shows Detail of current Payments Received = $77,034.52.

Winter payment Jan 2023

$1,814.00 loan

$20,089.00 scholarship

$21,903.00

Spring payment March 2023

$4,864.00 out of pocket

$1,815.00 loan

$20,089.00 scholarship

$26,768.00

Fall Payments August 2023

$5,054.52 out of pocket

$23,309.00 scholarship

$28,363.52

I really need to know what to do with all this on my taxes. Why do box 1 and what was paid not equal? He also doesn't have much expense other than a few books. Out of pocket was paid after loans and scholarships were applied.

Not A Product Question

KrisD15

Is this the student's first year?

If not, you might look at the 1098-T from tax year 2022 and see if the Winter 2023 was billed December 2022 and included in Box 1 of the 2022 1098-T.

If it is, and it was paid in 2023, you can adjust the 1098-T to reflect that correction, however that might mean that the 2022 1098-T would need correcting as well.

If you are claiming the American Opportunity Tax Credit, that credit maxes out with 4,000 expenses.

If you received that credit for tax year 2022 and need to adjust the expenses (to move them to tax year 2023) if the adjustment results in you still having 4,000 in expenses to apply to the credit for 2022, there would be no need to amend the 2022 return.

Use the "What if this is not what I paid?" link under Box 1 on the 1098-T entry screen to adjust if necessary.

(Schools had been reporting what was billed, but they need to report what was paid. This changed back in 2017 but some schools still do not get it right)

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

BokaryrhAuthor

It is his second year in college. I went back and looked at 1098-T from tax year 2022 and Winter 2023 was billed nov 2022 and the only amount that was paid in 2022 was an out of pocket amount of 4920. Box 1 is the total amount paid in 2022. This year 2023 the amount in box 1 is labeled Cap Limit Charges Billed but the actual amount for Current payments received is 77, 034.52. So can I adjust this amount in box 1 when entering numbers on 1098-T form? Box 1 is labeled "Payments received for qualified tuition and related expenses". Thank you for any advice with this issue.