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Level 3
November 6, 2023
Solved

What is the best practice for entering 1098T info when no loan payment have been made?

  • November 6, 2023
  • 1 reply
  • 12 views

Taxpayer is concerned about reporting 1098T expenses when no payments have been made. The expenses reported in box 1 are from a student loan. The taxpayer has recently become disabled and is asking for loan forgiveness. Is it best to include the 1098T info as reported and adjust if and when loan forgiveness is received? What is the best way to handle this situation so as not to interfere with the loan forgiveness request?

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Best answer by PhoebeRoberts

Payment was made, though. The payment is what gave rise to the loan. I'm assuming this is a normal student loan, not an oddball situation where the taxpayer owes money to the educational institution.

If the client requests a statement of account from the school (which they should be anyhow, because the 1098-T is not always accurate), how much does it show the client paid? Is Box 1 of the 1098-T not clearly labeled "payments received"?

1 reply

PhoebeRoberts
Intuit Community Champion
November 6, 2023

Do you have any reason to believe that the status of the loan, and whether or not it's forgiven, is relevant to determining the credit amount?

Level 3
November 6, 2023

If the credit is determined by expenses paid....then is it best to not include the credit if no payment has actually been made?

PhoebeRoberts
Intuit Community Champion
November 6, 2023

Payment was made, though. The payment is what gave rise to the loan. I'm assuming this is a normal student loan, not an oddball situation where the taxpayer owes money to the educational institution.

If the client requests a statement of account from the school (which they should be anyhow, because the 1098-T is not always accurate), how much does it show the client paid? Is Box 1 of the 1098-T not clearly labeled "payments received"?