Enrolled in school in july 2020 charges upon enrollment were 1499.Estimated due for the entire program is 7120.25. Payments will roll over to 2021. How do I file this?

Forum|Forum|5 years ago
April 19, 2021
1 reply
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Do I file just what was due in 2020. or do I file the complete amount given it is associated with that school year

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Hal_Al

Employee

You may only claim what you actually paid in 2020. If you were allowed to delay payment until 2021, for courses taken in 2020, you can not claim the 2021 payment on either your 2020 tax return or your 2021 return.

Payments MUST be in the same year as the courses. The one exception* does not apply, in your case.

*You may claim, on your 2020 tax return, payments made in 2020 for the first term in 2021.

Carl11_2

Employee

Just curious here.

Payments MUST be in the same year as the courses

Is this implied in IRS Pub 970? I'm looking at page 40, "What expenses qualify?". Or is it more direct somewhere else in that pub?

Hal_Al

Employee

Page 12 of Pub 970 The American opportunity credit is based on adjusted
qualified education expenses you pay for yourself, your
spouse, or a dependent you claim on your tax return. Generally, the credit is allowed for adjusted qualified education expenses paid in 2020 for an academic period beginning in 2020 or beginning in the first 3 months of 2021.

Similar wording is used for the Tuition and Fees Deduction and the Lifetime Learning Credit and 529 Plan distributions.