1098-T Covid payment delay

[Colmatt]

Client received 1098-T Box 1 $10,000 

School allowed deferral of payment until fall of 2021

So he paid non in 2020, advise as to when to claim?

Thanks

[Terry53029 · Accepted solution]

Tuition is claimed in year paid, I always have my clients provide their receipts, as 1098s are notorious for being incorrect 

[Colmatt]

I do too but I was hoping for a Covid exception of some sort.  

[BobKamman]

Don't ask us, ask the school.  Maybe they arranged a loan from a third party, so that the tuition did get paid.  Box 1 should show only amounts actually received.  If it's wrong, get it corrected.  

[Terry53029]

@BobKamman  Bob, have you ever been able to get a corrected 1098T ? if you have, your doing better than me. Many years ago I would try, but now I don't bother. I guess that is the reason the 1098T worksheets in most professional tax software make a box to put the amount actually paid. 😁

[TAXOH]

A few years ago one of the Universities where I lived had messed up the original 1098T's and issued corrected ones to the students that were affected by it.  (I had nothing to do with talking them into correcting them.  😁  I don't know if someone else did or if they discovered it on their own).

[BobKamman]

@Terry53029  " Bob, have you ever been able to get a corrected 1098T ? "

I tell the client to do that.  They're going to college to learn how to be adults like that.  The situation improved in the last couple years when the 1098-T was changed to show only the amounts paid, not billed.  Around here the winter semester was almost always billed in late December but not paid until early January.  

It's still a scam, though, like solar energy credits.  They passed a $2,000 credit, so solar heaters immediately went up in price by $2,000.  They passed a $2,500 tuition credit, so colleges immediately raised tuition by $2,500.