2015 Pharmacist Grad Tax Return

[Cangri One]

If my school did not give me a 1098T for 2015 since they claim the spring 2015 semester was on the 2014 1098T am I still eligible for the Lifetime Learning Credit ($2,000)?

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[pezdispenser]

Yes, as long as you 'paid' the tuition in 2015. If you received student loans which paid your tuition first, with the remainder sent to you, the payment date is the date when the loans were deposited into your university account. So hopefully this date was in early January 2015. If it was in December 2014, then you can't claim the credit for 2015.

The exact verbiage from the IRS Publication 970 is as follows:
https://www.irs.gov/publications/p970/ch03.html

Paid with borrowed funds. You can claim a lifetime learning credit for qualified education expenses paid with the proceeds of a loan. You use the expenses to figure the lifetime learning credit for the year in which the expenses are paid, not the year in which the loan is repaid. Treat loan disbursements sent directly to the educational institution as paid on the date the institution credits the student's account.

When you go to fill out Form 8863 for the Lifetime Learning Credit, Part III Line 22 (3) says: "Did the student receive Form 1098-T from this institution for 2014 with Box 2 filled in and Box 7 checked?", so you check Yes. What Box 7 on a 2014 Form 1098-T means is: "Checked if the amount in box 1 or 2 includes amounts for an academic period beginning January — March 2015".

 

[Cangri One]

I believe that my loans for the spring semester 2015 were deposited in my account in november 2014 but my 2014 1098-T does have Box 7 checked indicating the amount includes academic period from january - march 2015 so can I claim the credit?

 

[pezdispenser]

Probably not, since you go by the paid date which was in 2014.

 

[pezdispenser]

Wrong. You can if used for school in first 3 months of 2015

No, read the paragraph just above the one I quoted which says:
https://www.irs.gov/publications/p970/ch03.html

What Expenses Qualify?

The lifetime learning credit is based on qualified education expenses you pay for yourself, your spouse, or a dependent for whom you claim an exemption on your tax return. Generally, the credit is allowed for qualified education expenses paid in 2015 for an academic period beginning in 2015 or in the first 3 months of 2016.

For example, if you paid $1,500 in December 2015 for qualified tuition for the spring 2016 semester beginning in January 2016, you may be able to use that $1,500 in figuring your 2015 credit.

What that means is if you paid in Nov 2014, you could have claimed the credit on your 2014 tax return, not your 2015 return, but that's usually useless because you don't pay much, if any, tax as a student.

 

[Cangri One]

What is amazing is that my first three years of pharmacy school the disbursement for the spring semester were done in January of the same year. But on the year I graduate they disburse the spring semester amount in November instead. Thanks for your help pezdispenser.

 

[pezdispenser]

Wait- I paid my husband's tuition on Jan 2 2015, I thought I could use that for this credit? Am I being crazy here?!

I was talking about the OP before.

If you paid tuition in 2015, then you can claim the credit on your 2015 tax return.