Desktop: Where do I enter fees and expenses not listed on Form 1098-T ?
Form 8863 - Education Credits (Lifetime Learning and American Opportunity Credits) uses the paid adjusted qualified education expense to work out the education credits. The payment must be to an eligible post secondary institution of learning. The Modified Adjusted Gross Income (MAGI) is used to limit the education credits. The MAGI limitations are to be verified by Form 8863.
The IRS requires that various educational institutions send Form 1098-T, Tuition Statement to their students before the end of January. For a taxpayer to file their return without the form, they must be sure of their eligibility and the amount contained in the form. They should then contact the institution if they do not receive the form by the end of January. This also applies to those students in schools that are not required to send the report .
The preparer must have verified documents showing the expenses that are being claimed, the funds that were received and that reduced the education cost, scholarship and grants. In the event that there are expenses that have not been included on Form 1098-T, they may be included in Form 8863 and a Preparer’s Note tagged along in the return addressing the extra expenses. The preparer must be furnished with proof of the expenses. This may include copies of receipts.
To enter information to claim an educational credit in Taxx Savage Pro:
- Go to the Main Menu of the Tax Return (Form 1040)
- From the menu, select Credits
- Proceed to Education Credits
- Then to Edit Qualifying Students Information
- Select New
- Choose the qualifying student
- Show whether or not Form 1098-T was received
- Enter the EIN, name, address of the institution (required regardless of the reception of Form 1098-T)
- Evaluate the two checkboxes related to Form 1098-T
- Choose the education credit being claimed
- Select Qualified Expenses then enter the expenses and for scholarships, grants as well as other educational assistance received.
- Provide responses to the four Yes/No questions.
Caveats:
- A student can only claim one type of credit in a year
- Form 8917 cannot be claimed together with a credit ON fORM 8863.
Note: This is not tax advice. It is a guide on how to enter education credits into the Taxx Savage ProWeb program.
Additional Information: