Where Can I Enter Fees and Expenses not Listed on Form 1098-T in ProWeb? 

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 educational credit: 

• Go to the Federal Section of a tax return 
• Select Deductions 
• Then go to the Credits Menu 
• From the Menu Select Education Credits 
• Pick the qualifying student 
• Provide answers to the four Yes/No questions. 
• Indicate whether the educational institution sent Form 1098-T to the student. Select No for the questions in Box 2 and Box 7. 
• Add the EIN, name and address of the institution as was entered on Form 1098-T. 
• Once done, click Continue
• Key in the total Qualified Expenses which comprises of the following: 
  • +Form 1098-T Box 1 
  • Any other extra qualifying expenses 
  • Educational assistance that is tax free, received in that year 
  • Educational assistance that is tax free, received in the coming year for the current year and before the tax return is filed 
  • Qualified Expenses’ refunds received in the present year for that year 
  • Qualified expenses’ received in the coming year for that year and before the tax return is filed 

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. 

Additional Information:

IRS: Form 8863 Instructions

IRS: Publication 970, Tax Benefits for Education

IRS: Tax Benefits for Education Information Center