How to add additional qualified expenses?

Forum|Forum|5 years ago
March 27, 2021
2 replies
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I read online here that qualified education expenses for a Coverdell ESA include payments made in the first three months of the following calendar year. I don't believe these would be included in my 1098-T, so I'm not sure how to add them to turbotax.

Best answer by Hal_Al

@eric00 said "I don't believe these would be included in my 1098-T"

Actually, it's the opposite. Those expenses are normally included in box 1 of the current year 1098-T, unless you know, for sure, that they are not.

If you do need to add them, there are two ways:

1. In the 1098-T screen, click on the link "What if this is not what I paid the school" underneath box 1. You will then be able to enter the actual amounts paid, including payments made for the term starting in first three months of the following calendar year.

2. After entering the 1098-T, the follow up interview will ask about payments not shown on the 1098-T.

ColeenD3

Please see this answer from NicoleU.

Per the IRS, you will need to provide the following information and proof regarding your payment:

You can demonstrate that you were enrolled at an eligible educational institution (you may need to ask your school), and
You can substantiate the payment of qualified tuition and related expenses. You should keep records that demonstrate your enrollment and showing you paid qualified tuition and related expenses, like cancelled checks, receipts or documents that provide payment detail.

In TurboTax, you may need to do the following to reflect your expenses

Select Federal Taxes (Personal in the Home & Business edition).
In Online TurboTax, click the bars at the upper left corner to show Federal Taxes on the selection list; enlarge the screen if needed to show the left side selection list.
Select Deductions & Credits, and in the new screen, click on I'll choose what I work on.
Scroll down the Education screen .
Click on the Start/Update button next to the Expenses and Scholarships (Form 1098-T) category.
Your Education Expenses Summary page, click Edit
Here's Your Education Summary page, you will need to click Add New School
What's the Name of Your School?, click Continue
Did You get a 1098-T from _____for 2016?, choose No
Then follow the prompts, until you see a Enter the Tuition You Paid page