Form 1098-T and FAFSA Grants Question

charlieschm
Thu, 07 Feb 2013 08:58:52 +0000

Yes, it seems some of the 1098 forms being sent out by colleges do not correspond to a tax year. Part of the problem is that colleges bill in November 2011, but you may pay the bill in January 2012. Also, Financial aid may be credited in January of 2012, but you may pay the tuition in December 2011. As a result, the numbers don’t line up.

One person told me to make sure you print out your actual billing and payment records from the college on paper, and keep them in a safe place. If there are questions, that is what was matters - what you actually paid out after aid during a calendar year. (My son’s college clears all of the online billing statements after a year, so it is good to print it out).

It is easiest if you withdraw any 529 funds within the same calendar year as you pay that tuition bill.