Terry D EA Posted March 27, 2019 Report Share Posted March 27, 2019 The handling of these 1098-T with colleges is getting quite frustrating and at this time of the year, I don't have time to dig into each and every scenario. New client's daughter is attending college and present me with a print out of the expenses from the college. Good so far. The statement wasn't totaled in either column (Charges & Credits) and for the life of me I don't understand why the college wouldn't do this. Now on to the rant. The 1098-T has an amount received that according to the client is only half of the year. ARRGH!! Apparently they are correct, the charges column adds up quite a bit more than the 1098-T. The charges column greatly exceeds the scholarship in box 5. But, on the 1098-T, the amounts received are less than the scholarship funds so it looks as though there is an excess when there is not. Yes, I did subtract the R & B charges and there is still more paid then box 1 of the 1098-T shows. To add another twist, the client's payments for the spring semester paid in 2018 don't show on the statement from the school. Thankfully the client has receipts. Here is the rant, why in the hell can't these universities that are teaching higher education get their billing right??? I know I am being a bit paranoid here. Within the last two years I have had three clients questioned by the IRS regarding the education credits, especially the AOC. How do you defend this crap when the time comes. Does anyone trust a 1098-T? Geez! 3 Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted March 27, 2019 Report Share Posted March 27, 2019 I/we feel your/our pain. When this form was new, my husband worked at University of Cincinnati and they produced a sterling form including the breakdown of payments received, scholarships, loans, everything way before it was needed. I've never seen a better one since. 2 Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 27, 2019 Report Share Posted March 27, 2019 The Forms 1098-T have seldom been accurate and probably will stay that way. When they reported Billed, we knew we had to have our clients get the bursar's statement. Now that they report Paid, you'd think they'd be better. But, apparently, colleges don't all use the same definition of Paid. Sometimes Paid is from all sources, sometimes after Scholarships &/or loans are applied. We still need the bursar's statement PLUS have the parents/students add up what they paid out of pocket. And, there's still separating what our clients paid for tuition from R&B and other expenses. And, yes, these are the folks teaching the next generation. Employers can't use a loose definition of what they Paid their employees. We can't be sloppy with how much we Paid for our business deductions. Rant over. 4 Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted March 27, 2019 Report Share Posted March 27, 2019 Their definition of scholarship is sometimes a little different than mine also. I would not consider amounts paid from a 529 plan as scholarships, but one Virginia university did in at least one case that I looked at. I would not consider a loan to be a scholarship, but at least one Virginia university did in a case that I looked at. I am not even sure they get the half time student box right because at this point I don't trust anything they put on those forms. 2 Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted March 27, 2019 Author Report Share Posted March 27, 2019 Filing education credits and college statement analysis. As I said, these are people providing higher education but for some unknown reason can't see the importance of accuracy. Maybe the colleges should be fined by the IRS for whacky and no sense making reporting. 6 Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted March 27, 2019 Report Share Posted March 27, 2019 All it would take is for the IRS to audit one major university, and very publicly punish them for the rest of the universities to get their act together. But like EIC fraud, it will never happen. Universities and poor people are politically untouchable. Tom Modesto. 4 Quote Link to comment Share on other sites More sharing options...
Randall Posted March 27, 2019 Report Share Posted March 27, 2019 They'd rather we verify 1098Ts for accuracy, give our clients lie detector tests or whatever. Threaten to fine us with penalties if the documents we're given are incorrect. 6 Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted March 28, 2019 Author Report Share Posted March 28, 2019 <<<<<whacky and no sense making reporting.>>>>>>> Don't you just love that grammar??? Yes, I am college educated even though it doesn't show. 1 Quote Link to comment Share on other sites More sharing options...
SaraEA Posted March 28, 2019 Report Share Posted March 28, 2019 All you needed was hyphens and you'd look like you had made a common-sense-making report. I know this stuff because I was an English major. 2 Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted March 28, 2019 Report Share Posted March 28, 2019 12 hours ago, Terry D said: <<<<<whacky and no sense making reporting.>>>>>>> Don't you just love that grammar??? Yes, I am college educated even though it doesn't show. I thought you used that syntax intentionally to emphasize your point 1 Quote Link to comment Share on other sites More sharing options...
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