My wife finished her undergrad degree in May of 2006. She was billed for the spring '06 semester in December '05, but did not make the payment until January '06. Her bursar's statement supports this statement. We did not receive a
1098-T because it only shows when she was "billed." According to the IRS, the deduction is for qualified tution expenses PAID in 2006. Should I be allowed to take the deduction even though I have no 1098-T? Thanks
snipped-for-privacy@auburnalum.org (kastnna) posted:
Yes. All individual federal taxes are normally calculated on a "cash basis" -- i.e., deductions may be taken only for payments actually made during the calendar year for which the tax return is prepared. As you noted, the instructions cite the deduction is for qualified expenses PAID. Go ahead and take it, but keep your records, including the bursar's statement, in the event your return is examined. Bill
Yes. The only time I've seen a correct 1098-T is in publication exhibits. Even the IRS warns you to work from financial records, not the 1098-T.
-- Phil Marti Clarksburg, MD
1098-Ts are notoriously inaccurate. Deductions/credits should be claimed on when actual expenses are paid, not on what the university sends to you in a 1098-T. Dennis
Yes. You paid it in 2006 for a 2006 academic period.
-- Alan
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