Form 1098-T

My daughters both received Forms 1098-T from their colleges. Recently divorced, I'm trying to save a few bucks and using Turbo Tax. Both of them used student loans and financial aide from their schools to pay for college tuition. Here is my quandary: Daughter One graduated last May (2006) so her loans are due soon. Her 1098 has a zero amount in box 1 (payments received), $10,173 in box 2 (amounts billed) and $4750 in box 5 (scholarships). Daughter Two is currently in school. Her 1098T shows zero in all boxes except Box 4 (adjustments for a prior year) which shows $12047. Will they be able to take any of these as deductions or credits? Will Turbo tax pick this up? Thanks in advance for any input. Rob

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Reply to
RC
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Hard to say if TurboTax will work right. Ignore what is on the 1098T and enter into the program the amounts actually paid to the schools in 2006. Box 1 for daughter one may be zero if she paid for it in December 2005. If she paid the bill in 2006, whether with a loan or with actual money, deduct it on this year's tax return. That's why it is best to use your actual numbers and ignore the 1098T, because they are often wrong. Dennis

Reply to
bono9763

Like Bono said, 1098-T forms are very often wrong. Use the actual receipts, account ledgers, etc. etc. to figure out the qualified higher education expenses actually paid out. I posted a similar situation here earlier this year and we quickly discovered that what the IRS wants to know and what the University puts on the 1098-T are often misaligned.

Reply to
kastnna

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