1098t Spring 2010 4th year tuition?

[BobBarker]

Just got my 1098t for 2010. Expecting to see my Spring of 4th year tuition costs on there but no costs were listed just a little extra loan money I got that Spring. Reviewing the 2009 1098t, it became clear that they billed me for Spring 2010 costs in November of 2009 and therefore they were included on my 2009 1098t. Anybody have any advice on how to deal with this?

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[edmadison]

Just got my 1098t for 2010. Expecting to see my Spring of 4th year tuition costs on there but no costs were listed just a little extra loan money I got that Spring. Reviewing the 2009 1098t, it became clear that they billed me for Spring 2010 costs in November of 2009 and therefore they were included on my 2009 1098t. Anybody have any advice on how to deal with this?

When were they paid? That's what matters. If they were paid in 2010, you can claim them, if in 2009, you can't. If they were pain in 2009 and you did not claim them last year, you can file an amended return if it will make a difference in last year's taxes and potentially get a refund.

Ed.

 

[BobBarker]

1/2 were paid in 2009, and 1/2 were paid in 2010.

 

[alwaysaangel]

You make enough money that it matters for you? I always enter my 1098 (which is significant 30k/year) but my standard deduction always comes out to be more and it becomes irrelevant.

 

[BobBarker]

You can get a tax credit for tuition costs on top of your standard deduction. You need to look at ammending and refiling.

 

[alwaysaangel]

You can get a tax credit for tuition costs on top of your standard deduction. You need to look at ammending and refiling.

Really? May I ask what the name of the tax credit you're referring to is? If I can get more money I would love to.

The only one I know of is the Lifetime Learning credit. For that one if your credit is bigger than what you owe in taxes, the taxes you owe are reduced to zero, and the rest of your credit is lost.

Since I owe basically nothing in taxes it doesn't give me anything (I work but part-time and don't make much/year). If there is something better I should be claiming I would like to know about it so I can call TurboTax and yell at them.

Thanks.

 

[dpmd]

There isn't a refundable credit for education expenses, so there isn't any way it will help someone who wouldn't owe any taxes anyway. Where it becomes helpful is the year you graduate and start residency, but unfortunately most schools have the due date for spring tuition some time in the december prior which screws it for everybody unless they somehow delay the loans funding (difficult to do) or if they are paying cash and somehow don't pay until the next month (which wouldn't be allowed at some schools. Whatever is paid in the december prior can't be deducted in the next years taxes (or used for the education credit). No way around it unless you are willing to cheat on your taxes and pray your don't get caught. It must help the school to do it the way they do, since it screws the student so much. Too late for the OP, but people about to start fourth year may want to look into trying to get a deferment for the tuition owed for spring so it is paid in the year you will graduate.

 

[BobBarker]

My wife works, and I have some side income so we have always benefited from the credit. I did pay approximately half of the tuition after the first of the year with cash, so looks like I can get some benefit from the credit after all.

 

[babel]

Where it becomes helpful is the year you graduate and start residency, but unfortunately most schools have the due date for spring tuition some time in the december prior which screws it for everybody unless they somehow delay the loans funding (difficult to do) or if they are paying cash and somehow don't pay until the next month (which wouldn't be allowed at some schools.

Exactly. I actually benefitted from this when I started medical school. I worked full time Jan-June, then paid $15k+ in tuition, so I got all of my taxes back ($4-$5k). I'm a 4th year now and am hoping that I'll get the same when I file taxes next year. I just checked and I paid tuition on 1/5, so looks like I just squeaked by.

 

[penguin24]

I'm a PGY-1 and did my taxes a few weeks back. My Spring semester from M4 was paid in Jan of 2010, so I was able to use the educational credit and got a fat tax refund. Don't forget to take advantage while you can.