Another quick question...
If a student received a 1098-T for 2011 is it mandatory we see the previous year 1098-T in order to complete Form 8863, Part III, Line 22 a 3 ?
Per the: 1098t instructions and the education institutions (or their vendor) are responsible for reporting qualified education expense on the Form 1098t. This means not double counting for the Jan - Mar 2012 period in between the 2011 and 2012 reporting. I believe the IRS and TaxWise added these new questions to the Form 8863 for the IRS's due diligence. For taxpayers to answer, we need to look at the 2011 Form 1098t to provide the answer if there was one.
If the taxpayer believes there might be a problem with either the 2011 or 2012 Form 1098t, then the taxpayer or the student must address this with the education institution to get the form corrected. As tax preparers, TaxAide volunteers must use the amounts reported by the institution to the IRS on the Form 1098t.
The first question to the taxpayer is: For Line 3 - Did the student either attend this education institution in 2011 or receive a Form 1098t from this institution for 2011? Taxpayers answer Y or N. If there is any question on the taxpayer's part, then the taxpayer or student should go to the education institution's finance or administration group to verify. They should ask for a statement of qualified education expenses for the concerned periods.
Of course inputting the institution's EIN follows on Line 4.
Thanks Mary Jane Heavrin for the question.
NE TRS - NE AARP Tax-Aide