1098-T

Technical topics regarding tax preparation.
#21
EZTAX  
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Agree Joan - but I really like that dance! It is one of our "hero moves".
 

#22
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Must be lucky so far. Because of the past requirements for account transcripts, my clients are still including them this year. So far batting 1000 on pmts matching the box 1 amounts. Only had maybe 15-20 so far though.
 

#23
Riki_EA  
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We are finding that they aren't always tying out correctly to Box 1 when there are scholarships and/or direct 529 payments. For at least one we've seen, they seem to be excluding the scholarship amount from the Box 1 total, while still printing it in Box 5, scholarships. For example, a full paid scholarship might show $0 in box 1 and $12,000 in Box 5, leading the software to spit out $12,000 in taxable scholarships when it should be zero - the scholarship paid the $12,000 tuition.

Of my two kids, one ties out to the penny, and the other doesn't tie out at all, and since there is no detail, I don't know how they computed the number. I will adjust to my records. Another preparer saw a situation where the direct 529 payments were not included in the Box 1 total. So, we are still asking for bursar's statements if the Box 1 amount is critical.
 

#24
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Endwell NY
kbairtax wrote:Must be lucky so far. Because of the past requirements for account transcripts, my clients are still including them this year. So far batting 1000 on pmts matching the box 1 amounts. Only had maybe 15-20 so far though.


To date, 4 out of 5 box 1 amounts that I have seen are clearly incorrect.

Today it was a SUNY school. Box 1 contained EVERYTHING the student was billed (all billed amounts were paid) with one adjustment (negative) for the amount of SUNY tuition credit. Yes, that means they included room, board, etc. The transcripts clearly show this. On this one I am allocating the PELL grant to living expenses (and therefore taxable to the student) in order to qualify the client for some (most) of the AOC.

Another SUNY school I have appears to have box 1 correct, though I can't spend the time reconciling the approximately 175 line items on the transcript that all pertain to the 2018 amounts paid. I did total the tuition only amounts to just about 7k and the box 1 shows 8k so I imagine this one might be correct.
 

#25
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Huh....I did not look back but I know at least 3-4 of the ones I did were SUNY schools. They tied out to just the tuition payments....nothing in box 1 for room and board. Have not yet had any with 529 plan payments, but will watch for that. I did not give it a thought but now that you mention it, the school will not know where that money came from if it was not paid directly to them from the plan.

heavy sigh.......I guess I got excited WAY too early in the game.
 

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