The CORRECT way to Calculate Education Tax Credits

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Information The CORRECT way to Calculate Education Tax Credits | 1098-T Explained

Title	:	The CORRECT way to Calculate Education Tax Credits \| 1098-T Explained
Lasting	:	10.25
Date of publication	:
Views	:	95 rb

I recieved a 1098t form from my esthetician school, I ended up withdrawing from the school after a month due to personal issues, but I paid everything I owed to the school and now that I’m filing taxes I’m confused on what tuition and fees were paid by me since I withdrew but I also had a Pell grant to that was originally covering some of the tuition? What should I do to make sure I file correctly
Comment from : @alexuslovato835

Perfect
Comment from : @michellejensen3867

Hi I'm a AARP Tax Aide volunteer I learned this "secret" several years ago I can't understand why college financial offices don't give this info to students!! Taxpayers are losing thousands of dollars! Thank you for making this video (which I found a few yeaars ago) People need to know this!
Comment from : @christinesegatti9281

Pleased Lei me in
Comment from : @CathyVarney

Do u actually need a 1098 T to claim Lifetime Learning Credit or qualified expenses paid by you towards college expenses Thanks
Comment from : @vgk11

Is it normal for box 5 to be higher than box 1?
Comment from : @anthonyjimenez4894

Great video! Any idea if international student need to file for 8863 if they received form 1098T? brbrThank you
Comment from : @Mvuyo_abroad

Power to the people ✊🏾
Comment from : @min2oly

I need your help please I’m trying to amend my taxes so I can get credit I have no idea what I’m doing I normally file my own taxes
Comment from : @Ohthatsmillie__

you go way to fast!!!!
Comment from : @jeanetterodriguez2580

So is my total tuition paid: my tuition paid for the year plus box 5 plus box 1? Or just box 5?
Comment from : @marquonnygoochtavius6228

Hi, I got grants and FAFSA and I have three of the 1098-T (2020,2021,2022) and they all say “Copy B For Student: This is important tax information and is being furnished to the IRS This form must be used to complete Form 8863 to claim education credits Give it to the tax preparer or use it to prepare the tax return” I am a dependent and my family has a tax preparer who does our taxes, but I did not know I was supposed to inform our tax preparer about these; I thought that he would have already received the information through the IRS I will send him the 2022 form when we do our taxes in a few months but what do I do about the 2020 and 2021 forms? My school has sent me online versions of them brbrWill I get in trouble for not have shown those forms in 2020 and 2021? Should I mention to the tax preparer that I didn’t send the 2020 and 2021 forms?
Comment from : @kindree5414

Another enjoyed video
Comment from : @rralph3445

I’m an international student and got this form, but when i opened it it said:br“Message brYou do not have any 1098-T Data availablebrbrPlease note that you will not receive a 1098-T if any of the following apply:br1 Your grants and/or scholarships exceeded your allowable charges for the calendar yearbr2 You did not have allowable charges in the calendar year brWhat does this mean?
Comment from : @Libbydar_17

Question if your still actively responding: The IRS recently denied my brother from receiving the American opportunity credit for the 2020 tax year He started school in the fall of 2016 Wouldn’t that still make him eligible to receive the American opportunity credit for the 2020 tax year considering he completed school in May 2020
Comment from : @june45628

Question: why keep $1000 in the pell grant instead putting all the pell ($5000) in as income? And how do we determine how much of the scholarship should stay under scholarship and how much should be put under income?
Comment from : @victoriadefreece4464

if my son receive a 1098 with box 1: $5,807 and box 5: $7,743 Can I use his excess scholarship $1936 in his taxable income also include $4000 more of his scholarship in his income?
Comment from : @vkasende

Do you have when VA benefits is the only income as wellbrWith GI bill & grants
Comment from : @brendatrevino4320

how you filed this
Comment from : @nancybthescratcher6327

Love your communication skills You are AMAZING!
Comment from : @carltonlennon4046

Do I need receipt for all the books and computer I bought to file for expenses?how about gas to commute?
Comment from : @jesusmysavior6744

What if I don’t have anything in box 1? Can I still get the credit if I’ve never have got the credit before?
Comment from : @indicativelyunfortunate146

Thank you so much for this video I am a mother and is my child first year in college I didn’t understand too much But I will reply it Thank you so much
Comment from : @yudelisthomas4189

Hello, can I claim the AOC TAX Credit if filing married jointly? Grants paid for all my school expenses so I never paid anything out of pocket
Comment from : @priscillavidaurri5585

I have two goals with my kids college 1) Take advantage of all tax credits 2) Minimize the amount of private loans they have 3) Wait as long as possible for them to borrow money because of accrues interest I have enough in a 529 to pay for the entire first year which would mean delaying borrowing Can you still claim education tax credits if you use a 529? If not how much would you recommend paying out of pocket each year?
Comment from : @japerelectronics2568

What if I'm my mom isn't claiming me as a dependent, but we both paid toward tuition and took out loans, can we both claim the AOTC when filing?
Comment from : @ChrisRoxDuhh

You're pretty and thank you soooooo much for making this video
Comment from : @tayokristine

I don't understand why my federal refund came up as $826 after filling out the education portion on TurboTax I was expecting it to be $1000 (not $2,500 since my income is $0), and I added $27 for a book that I purchased for one of the courses Not sure what I'm missing
Comment from : @LutherAEvans

when’s the English version Gonna drop
Comment from : @JayPrinceReacts

Why does a tax software ask us to put in Box 2 amounts when the amount is not an actual amount I paid? I am asked to fill in 1098-T exactly same way as in the form What do I do? Can IRS audit me citing my 1098 and actual amount in form 8863 are different?
Comment from : @jacobkowski7705

This is the best instruction on education credits Thank you very much
Comment from : @jacobkowski7705

Hi I have a question When claiming my federal pell grant as taxable income, will that count as a qualified educational expense within itself or does it simply just not get deducted from expenses I do incur? For example if my tuition cost 12k and I get 12k in financial aid to cover the entire cost if I claim 8k as taxable income will I now have 4k in qualified expenses to be eligible for the full AOTC?
Comment from : @TheSubset8

You talk way too fast You may want to skip the caffeine
Comment from : @eddie195777

I'm trying to do my sons taxes n it says he doesn't qualify for the credit I'm trying to figure out why
Comment from : @mwoods4608

thanks!!
Comment from : @chadalpha2149

i have a question i just did my tax return and my 1098t had box 1 and 2 blank but box 5 was 7k for 2020 do i go into my student account and add what my pell grant paid for ? i already turned it in but will admend it once it’s accepted
Comment from : @mathewellison6110

this was the most confusing video of my life
Comment from : @samanthaurias1556

I dropped out fall 2019 but got a 1098-T for 2020 with my amount due listed in box 4 but nothing in any other box what do I do?
Comment from : @patjohnson9239

Can you file the lifetime learning credit if your graduated and never filed it when you were enrolled in the college?
Comment from : @gabrielwhite1991

This is like a different language
Comment from : @folasadeadedapo

I live in Wisconsin I need to know how to calculate the amount of college expenses for state taxes Federal does it automatically but not sure how to do it on state This is for my daughter this is her 3rd year
Comment from : @WIGAHOLIC14

I still received 1098-t form but I already dropped out of college so idk what to do with it any tips?
Comment from : @CL0UD143

2020 1098-T --- Bx:5 is HIGHER than Bx:1 --- I have amounts in Bx:4 & Bx:6 --- Bx:4 amount is HIGHER than Bx:6 --- Bx:4 is LESS than Bx:5 I FEEL NAUSEOUS 🤢! I NEED A PAPER BAG AND YOUR MUCH NEEDED ASSISTANCE ON MOVING FORWARD THANK YOU! 💚💛🧡
Comment from : @Tammmeee

What if box 4 has an X amount of money? Is this added or subtracted to which box??
Comment from : @georgeruiz7073

See we can get a 2500 refund? How much do pay out do pocket to get the full 2500 refund?
Comment from : @kenjr7632

Okay so I started college in fall 2015 Got my associates in fall of 2017 Got my bachelors in spring 2020 Its asking me if I got 4 years of college credit (bachelors) before 2020? Maybe im just dumb but its confusing me Should I say yes or no? I've been in college for 5 years?brbrAlso, my parents have been claiming me as a dependent for the past few years, but we never filed my 1098T formsthis is the first time I'm doing it Am I able to file my other ones or not? brbrI was eligible to be filing as independent but my parents have been making me file as dependent bc they're either dumb or taking advantage of me being "dependent"
Comment from : @alisonbruemmer3580

Can someone please helpbrFor the llc credit for college students for qualifications - would someone who is not paying out of pocket but having the loans pay for college Would I qualify
Comment from : @SunkissNia

Great video I wanted to ask what does it mean when box 4 is negative
Comment from : @levettenicole8168

Hey How are yu? If your getting hope will you still be able to get anything back for taxes From college?
Comment from : @deidrastanley8164

If I file my 1098-t will it reduce the amount of financial aid I'll receive?
Comment from : @KevinK3vin0

So to qualify, we have to pay tuition out of our pockets? Fafsa grant dosent count?
Comment from : @mariamacruz107

0:53 Love this moment
Comment from : @leandrodeoliveirachagas7982

@3:14 you mention that most schools used to only fill out box 2- the amount billed, but nothing in box 1 - the amount actually paid This was the case with my taxes in 2017 However, I "moved" the amount to box 1 when I filled out my 1040 and put nothing in box 2 Would this have any impact on my taxes?
Comment from : @ryan-chase

you're awesome :)
Comment from : @ryan-chase

Can I make amends for previous years if I have never filed for a 1098-T? My school never sent any and I just heard about this! Any fees?
Comment from : @paulinenguyen6755

Thanks dear so my question is had to buy a laptop for college Can i claim that on my taxes and if yes do i need the receipt for it and how do i itemized it?
Comment from : @malikpernarh2245

I have no idea
Comment from : @mms8477

GOD BLESS YOU THANK YOU FOR THIS!!
Comment from : @mariannaduarte2910

So, because of COVID my class syllabus says that I should have reliable internet connection and a computercan a laptop quality for the American Opportunity credit
Comment from : @dbricksawc3634

If I payed my fall and spring semester before the end of the year, will I still run into the same problem during tax year 5?
Comment from : @kamillesimon812

So I don't owe any money on my tax return but my 1098-E has 308 on it Can I get this money included in my refund or would it not make a difference because I dont owe anything?
Comment from : @rishib333

Most tax software has a worksheet to add other costs such as books and supplies not included on the 1098-T form and no one cannot write off computers as supplies at most IRS seminars when talking about this form the tax pros say get an actual print out of what was paid to the University for that tax year to be sure what was paidsince the first day colleges started sending these 1098-T forms most were wrong and the colleges didn't seem to care that they didn't know how to fill these 1098-T formsand the colleges still don't
Comment from : @JohnnyBGood11

Do we have to report grant/scholarship amount (box 5) if more than your tuition (box 1/box 2) on your 1098-t form? I've noticed my refund decreased I also reported my w2 form
Comment from : @wavyrendon

I need to redo some tax returns; ah geez
Comment from : @ThinkingPower0

Hi, I really appreciate your time to create this video that officially still helping us in 2020 :) br brI was wondering if you could give me some advice And thank you in advance for helping :)br brSo I’m using H&R Block online tax to file my taxes this year and I did not receive a 1098t form I called the school and they said I don't get one because they reported my Spring 2019 with 2018 1098T form But I paid for Spring 2019 tuition during 2019 Should I report it, if yes, how should I do it? (Keep in mind it was my last semester and I don't remember if I claimed AOC for 4 years)brbrbrThank you and stay safe
Comment from : @salahlatif3323

At this point can u do my taxes lol
Comment from : @tyneishayoung7927

I am an online student and I just received a 1098t form this year even though I started school last year in the summer I did receive a pell grant that covered my tuition and fees but I still had to take out a loan when I received my form the first and fifth box was filled out I also am planning to do my taxes alone I am very nervous to be filing alone and I am unsure if I should file as I also have a regular tax form from the job I worked last year to file as well I am still a bit confused about how to file and wondering if you had any advice
Comment from : @LunaBey777

Are application fees and deposit consider eligible for the credit?
Comment from : @lamooshka6899

Hi thanks ,can I add more expensive in box 1 ,if I have my 1098t box1 is 7000 and my box 5 is 4000 grants , but I need to put more money in box1 ,for qualified 1000 thousand , can I do that I subscribed and I give you likethankyou
Comment from : @yericovidal1717

so what number am i putting in for the form the amount paid or the total cost of attendance? Or the total cost of attendance minus the amount paid? i'm doing this through credit karma and they are asking for a single number and idk what to type in even after watching this video and few others i'm still confused
Comment from : @DevonMcDonald1

You never said what you ended up doing with your 5th year 1098T that only included scholarships in line 5 Did you have to claim that as taxable income?
Comment from : @dan33klein

She said a whole bunch of nothing I’m still confused 😐
Comment from : @leiahdavis1908

My daughter received only financial aid She has a 1098t it’s only 1084 Do I need to use it on my taxes
Comment from : @tedrab28

Hey my box 5 (scholarships and loans) is 10,000 while my box 1 is 8,000 I took out 4,200 in loans in that (2019) tax year as well Does this mean I don't qualify?
Comment from : @seanlief4488

Hey! I have a question The amount in box 1 is higher than the amount in box 5 Box 1 has about $6,300 and box 5 has like $4,300 Is this possibly because I took out loans?
Comment from : @princesscami122099

1098T LIne 1 and 2 blank for 2019, Line 5 is $3900 (her merit scholarship that covered tuition only) So since they reported Spring semester back on 2018 1098T we now get screwed and have to pay income tax on this merit scholarship?
Comment from : @bigblue3568

So question if just receive the 1098-T form in the mail todaybrbrAre we supposed to file this form together with W-2 all together or how does this work because I already filed my W-2 and the 1098-T form came late as today, brBut do we file the 1098-T form anyway?
Comment from : @childishrare

I only got box 1 and 5 but dont know how to put it in turbotax
Comment from : @Almgaming3

I still don’t understand argh So I did get a pell grant and a student loan but no job
Comment from : @RoseGold1224

I tried to amend it from all the way up to 2016, and it wouldnt let me on turbo taxit was basically saying my mom made a lot or something like that I dont know what to do
Comment from : @xoxoscruff

Hi, so i am trying to do my own taxes online this year But i am confused on how to calculate my expenses from my 1098 t form I see the box 1 and 5 listed But im not sure what to use to calculate? Should i just use box 5? Also im claiming the AOTC
Comment from : @JLESLIE151

If i am claiming the AOC can i include expenses on my laptop, books, supplies? Also, will i need to provide receipts? What happens if i did not keep record of them?
Comment from : @lifewithdestinee1446

How the hell does this video only have 6000 viewsand yes tax preparers told me i couldnt do this the last 2 years because of loan payments etc
Comment from : @sb0mb

I was told by the HnR block agent that you can't deduct expenses outside of the school such as books bough online She also said I couldn't deduct my laptop that I needed to online classes :| All together it was $1,000
Comment from : @ukrd94