Another 1098-T question

[L.S.]

client received 1098-T showing only $160 as tuition so got a printout from college. It is showing prepayments for 2008 course work for classes taken in 2008 - these payments are shown in 2007. Is there anyway these prepayments can be used on their 2008 income tax return? I am thinking no - but just want your advice. They used the full $4,000 tuition tax deduction in 2007, but had over $7,000 in expenses for 2007.

Thanks.

[mcb39]

client received 1098-T showing only $160 as tuition so got a printout from college. It is showing prepayments for 2008 course work for classes taken in 2008 - these payments are shown in 2007. Is there anyway these prepayments can be used on their 2008 income tax return? I am thinking no - but just want your advice. They used the full $4,000 tuition tax deduction in 2007, but had over $7,000 in expenses for 2007.

Thanks.

Does your 1098-T for 2007 have a box checked at the bottom designating that the payments are for 2008 tuition? I have a situation this year where the parents paid the tuition in Dec, 2008 but the student didn't start school until Jan 2009. Payments are designated on the T for 2009 tuition and we will use them when we file the return for 2009.

[L.S.]

Does your 1098-T for 2007 have a box checked at the bottom designating that the payments are for 2008 tuition? I have a situation this year where the parents paid the tuition in Dec, 2008 but the student didn't start school until Jan 2009. Payments are designated on the T for 2009 tuition and we will use them when we file the return for 2009.

Yes - that box was checked and thankfully the amount for 07 was over $4,000 but I can use part of the amount on that 2007 1099-T for the 2008 year - thank you very much for your help.