I paid college tuition through the florida prepaid college fund and did not receive a 1098-t. can i still get a deduction for what the prepaid fund paid out?

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I paid college tuition through the florida prepaid college fund and did not receive a 1098-t. can i still get a deduction for what the prepaid fund paid out?

Yes, you can still claim a tuition credit or deduction, but that might make part of your Florida prepaid college fund distribution taxable.

You can not double dip. You cannot count the same tuition money, for the tuition credit, that gets you an exclusion from the taxability of the earnings (interest) on the FL plan. Since the credit is more generous; use as much of the tuition as is needed for the credit and the rest for the interest exclusion.

Total qualified expenses (including room & board) less amounts paid by scholarship less amounts used to claim the Tuition credit equals the amount you can use to claim the earnings exclusion on the 1099-Q.

Example:
$10,000 in educational expenses(including room & board)

-$3000 paid by tax free scholarship

-$4000 used to claim the American Opportunity credit

=$3000 Can be used against the 1099-Q (usually on the student’s return)

Box 1 of the 1099-Q is $5000

3000/5000=60% of the earnings are tax free

You have $240 of taxable income (600-360)

‎June 5, 2019 5:09 PM New Member

I paid college tuition through the florida prepaid college fund and did not receive a 1098-t. can i still get a deduction for what the prepaid fund paid out?

is the prepaid fund considered a grant? i bought the prepaid plan several years ago and now it pays the university directly

‎June 5, 2019 5:09 PM

I paid college tuition through the florida prepaid college fund and did not receive a 1098-t. can i still get a deduction for what the prepaid fund paid out?

It's a scholarship. If you can, log into your online college account and go to your financials section of your account. You'll see all you need there. Understand this:
- Scholarships, grants and 529 funds are reported as taxable income (initially) in the tax year they are received. It does not matter what year that scholarship or grant is *for*.
- Qualified education expenses are reported/claimed in the tax year they are paid. It does not matter what year was paid *for*.
Remember that colleges work in academic years, while the IRS works in calendar years. So the reality is, it takes you 5 calendar years to get that four year degree. SO don't let that confuse you.
Finally, if you are an undergraduate that was under the age of 24 on Dec 31 of the tax year, changes are extremely high that your parents qualify to claim you on their tax return. If they do, then chances are even higher that your parents are the ones who will claim all the education stuff on your parent's tax return.