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I believe the 1098-T I received for my daughter is

incorrect. Her tuition/fees are...
I believe the 1098-T I received for my daughter is incorrect. Her tuition/fees are paid through a guaranteed tuition plan (Texas Tomorrow fund) I set-up when she was born. The problem is with Box 5 (Scholarships or grants). There is an amount there of $1202.98. When I called the University, they said it is an amount (%) of the total paid by the Texas Tomorrow fund. It just doesn't seem right that any part paid by the Guaranteed Tuition fund should be considered Scholarships or grants? thank you. *****: The Accountant will know how to help. Is there anything else important you think the Accountant should know?
Customer: No that's it
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Answered in 23 minutes by:
3/26/2018
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,719
Experience: Taxes, Immigration, Labor Relations
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Hi Ray.

Indeed - while mistakes possible - the University might be correct.

You are correct that the Texas Tomorrow Fund is classified for Section 529 plans - and distribution is reported on form 1099Q

However - the state honors all Texas Tomorrow Fund or Texas Guaranteed Tuition Plan contracts to pay for a beneficiary's college tuition and required fees.

So when tuition and fees are higher than the Texas Tomorrow Fund pays - the state pay the difference - and that difference is reported as scholarship.

So I assume - that amount $1202.98 is a part paid by the state.

For the payment from the Texas Tomorrow Fund - you should have separate reporting form 1099Q.

Let me know if that helps.

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Customer reply replied 30 days ago
Does the University have to provide the details if I asked for them showing the total tuition and fees; the amount paid by the fund which should equal the amount paid by the state (the difference reported as scholarships/grants)? Thanks.

Legally - all the University has to provide is form 1099T...
All details you may find in your daughter's account.

But when you contact the administrator of the Texas Tomorrow Fund - they will likely be able to explain all that mechanics.

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Customer reply replied 30 days ago
I do have a 1099-Q. It does not correspond with the 1098-T. The 1099-Q shows a gross distribution (line 1) of $9,293.02 but the 1098-T shows amount billed for 2017 of only $5,053? Shouldn't they be the same?

Discrepancies between these forms are very common.

It is possible that the University billed in 2016 for 2017 - and because of that - it is not reflected on 2017 reporting form.

But actual distribution corresponding with that bill was made in 2017.

Also they may issue in 2017 the bill for 2018 which not ever paid...

So we may dealing with timing issues...

If you want to verify - you will need all statements from your daughter's financial account at University - and you should be able to verify all reporting items.

Lev
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Customer reply replied 30 days ago
Thanks. Take care.
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