My DD college charges full tuition on the first semester, therefore her 1098-T shows the full amount of tuition billed but only the first semester of grants received. Last year I read some post that I can consider for tax purpose only the fall semester tuition. Am I correct on this? In case Im ever audit, I maintain a spreadsheet showing how I allocate the charges.
My question is about outside scholarship. DD received one last August, for tax purpose can I split it in half between each semester? Or do I have to consider the full amount in her 2011 taxes.
My second question is about 1099-Q. DD prepaid tuition plan statement shows distribution for 3 semesters (Jan10, Sep11, Nov11). The Nov11 distribution was for her 2012 spring semester tuition. Can I allocate this to 2012 for tax purpose?
My third question is also about 1099-Q. For my DS college I had to request a refund from the prepaid tuition plan since his college does not bill prepaid plans. However his first semester was fully paid by scholarships so the refund was not actually used to pay his first semester tuition. But Im using it to pay his 2012 spring semester along with the second refund. So for tax purpose, even thought the refund was received in 2011 can I allocate it to 2012 tuition?