Like Bono said, 1098-T forms are very often wrong. Use the
actual receipts, account ledgers, etc. etc. to figure out
the qualified higher education expenses actually paid out. I
posted a similar situation here earlier this year and we
quickly discovered that what the IRS wants to know and what
the University puts on the 1098-T are often misaligned.

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"RC" <southwind89nos...[at]hotmail.com> wrote:

- quote -

Hard to say if TurboTax will work right. Ignore what is on
the 1098T and enter into the program the amounts actually
paid to the schools in 2006.

Box 1 for daughter one may be zero if she paid for it in
December 2005. If she paid the bill in 2006, whether with a
loan or with actual money, deduct it on this year's tax
return.

That's why it is best to use your actual numbers and ignore
the 1098T, because they are often wrong.

Dennis

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My daughters both received Forms 1098-T from their colleges.
Recently divorced, I'm trying to save a few bucks and using
Turbo Tax. Both of them used student loans and financial
aide from their schools to pay for college tuition. Here is
my quandary:

Daughter One graduated last May (2006) so her loans are due
soon. Her 1098 has a zero amount in box 1 (payments
received), $10,173 in box 2 (amounts billed) and $4750 in
box 5 (scholarships).

Daughter Two is currently in school. Her 1098T shows zero
in all boxes except Box 4 (adjustments for a prior year)
which shows $12047.

Will they be able to take any of these as deductions or
credits? Will Turbo tax pick this up?

Thanks in advance for any input.
Rob

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