1098-T

[Janitor Bob]

Client has has education expenses the last few years.....1098-T with amount in Box 1. This year, however, his 1098-T has nothing in box 1 (received) and a large amount in Box 2 (billed)...also the box is checked at the bottom to indicate box 2 includes amounts billed for a perios beginning in 2009.

Am I correct that the taxpayer has no education expenses to claim this year for 2008...as nothing was paid...only billed?

Thanks

[kcjenkins]

You should not assume, ask the client if he has paid any in 08.

[RitaB]

You should not assume, ask the client if he has paid any in 08.

Yes, and ask about tax-free assistance. I find that the more questions I ask, the more I think that the 1098-T is a worthless document.

[Janitor Bob]

Yes, and ask about tax-free assistance. I find that the more questions I ask, the more I think that the 1098-T is a worthless document.

I have already sent an e-mail to the client.....I never assume......and yes I find the 1098-T less than reliable. another client received one with all zeros...what was the point of that?

[mcb39]

Could the student have changed schools or something. I had one where the student worked for the year of 2008; parents actually paid tuition expenses in Dec 2008 for classes that started in Jan 2009. That box at the bottom is checked so parents can take deduction in 2009. You always seem to have to pull the "rest of the story" out of them.

Also, have students wanting to claim WI homestead credit for the rent they pay. When I ask them if they received any scholarships or grants, they come in with all kinds of paperwork which disqualifies them.

The personalized plates on my vehicle (courtesy of my kids) read: "TAXD OUT". Believe me, that couldn't be truer at this moment.