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Subject Author Date
Higher education deduction & 1098-T discrepancies kastnna 02-02-2007
Posted by kastnna on February 2, 2007, 1:51 am
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 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

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Posted by Phil Marti on February 2, 2007, 7:56 pm
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> 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?

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

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Bill on February 2, 2007, 7:56 pm
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kastnna@auburnalum.org (kastnna) posted:

> 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?

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

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by bono9763@yahoo.com on February 2, 2007, 7:56 pm
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> 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?

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

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by A.G. Kalman on February 2, 2007, 7:56 pm
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kastnna wrote:

> 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?

Yes. You paid it in 2006 for a 2006 academic period.

--
Alan
http://taxtopics.net

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

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