Am I interpreting this right? 1098T form

[Thrif-t]

Hey guys I need some confirmation to make sure I'm understanding this statement correctly. It's how my one DD's college reports their tuition on the 1098t form:

The 1098T form is used to assist you in determining if you are eligible for an Education Tax Credit. It is an annual statement that provides you with the amount of tuition charged on your account during the calendar year.

So I'm interpreting this to mean its reporting tuition from spring and fall of the same year. Correct?

We qualify for the ATOC credit but I have to make sure we pay at least 4k in cash between the 2 semesters to get the whole $2500 back on our taxes. So with bills for Fall tuition being due next month I need to make sure I'm doing this right.

I always get confused because our other DD's school reports the school year on their 1098t, so Fall of one year and Spring of the next because the bills go out in December.

I don't want to mess up and not get that credit. Thanks for your help.

[disneysteve]

The 1098T form is used to assist you in determining if you are eligible for an Education Tax Credit. It is an annual statement that provides you with the amount of tuition charged on your account during the calendar year.

So I'm interpreting this to mean its reporting tuition from spring and fall of the same year. Correct?

our other DD's school reports the school year on their 1098t, so Fall of one year and Spring of the next because the bills go out in December.

I am not a tax professional so don't take my answer as gospel.

It sounds like they are both doing essentially the same thing but the difference in their billing schedules explains the difference. My daughter's school is like the 2nd one you describe. I just got the Fall 2017 bill today, due in August, and I will get the Spring 2018 bill in December, due in January. So on the 2017 1098T, those are the 2 bills that will be included since those are the charges billed during calendar year 2017. Spring 2017 was on last year's tax form because it was billed in December 2016.

[disneysteve]

To add to the above, however, what also matters is when YOU pay the charges. If I don't pay the December 2017 bill until January 2, 2018, then it would count toward my 2018 taxes, not my 2017 taxes.

[Thrif-t]

Thanks Steve, you're right, I think I'm just over thinking it. It doesn't matter what they report on their 1098 only what I pay in 2017. Thanks.

[disneysteve]

It doesn't matter what they report on their 1098 only what I pay in 2017. Thanks.

Exactly. As long as you qualify for the credit and pay $4,000 out of pocket, I think you're good.