Education Credit which year?

[Randall]

If Form 1098T is issued for 2013 but the box is marked for academic period beginning Jan-March 2014, is there a choice available to take the credit in 2013 or 2014?  Or must it be in 2013?

 

[Jack from Ohio]

If Form 1098T is issued for 2013 but the box is marked for academic period beginning Jan-March 2014, is there a choice available to take the credit in 2013 or 2014?  Or must it be in 2013?

 

​You must obtain a copy of the college account statement.  You may only use the payments actually made in 2013.  If questioned by the IRS, the 1098-T is worthless for anything more than the amount of grants and scholarships.  You cannot rely on the amounts in box 1 or 2.  Get the account statement and use the information from it.

[Randall]

In this case, the client was reimbursed by his employer when the course was completed.  However, he left the employer within a year and had to pay back the employer.  So if the payment to the college was made in 2013 but the expense was incurred by the client in 2014, I was wondering if I have to amend the 2013 return or include in 2014 return (which has not be filed yet).

 

[Pacun]

I would take it in 2013. My reasoning is based on two facts:

1.- IRS has 1099-T for 2013. As Jack said, 1099-T are meaningless but if you don't have one on record with the IRS for the year you take the credit, you might get a letter.

2.- If you get a student loan, you don't take the credit when you actually pay the loan but rather when you take the class. I know he didn't get a student loan, but I am basing my reasoning on that.