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Your Life

Major life milestones often have a major tax impact. Changes in your marital status, having a baby or adopting a child can have significant impact on your taxes. This is the place to ask questions about dependents, real estate, and other various scenarios that play a significant role in what taxes you pay.

Posts: 1
Registered: ‎03-03-2018

1098 T Box 4 / How to process

[ Edited ]


My wife received 1098T with amount in box 4. She paid in Dec 2016 a course and dropped in Jan 2017. She then got into another course which is exacrlty the same price as the dropped course. She is doing Bachelor of Science in BIO Chemistry 4 year program.




Question is when i am trying to fill online taxes using H&R online program where is the option to enter the amount of box 4 ? cant find it.


The other question is since she has paid again shouldnt the 1098t reflect that as well in some box to make it even?


Thank you. 

Associate (Pioneer)
Posts: 49
Registered: ‎01-08-2018

Re: 1098 T Box 4 / How to process

Hi khurrambilal,


Regarding form 1098-T- Tuition Statement, if you prepare your tax return online with a username and password, you will enter form 1098-T under Federal – Credits section – Visit topic: 1098-T Tuition and expenses for college and other higher education. The program will ask you a series of questions through interview screens to help determine the type of credit you might qualify for. You would click Add student – fill out form 1098-T. The software will ask general school information and ask which box do you have an amount (box 1 or box 2). If your amount in box 1 or box 2 does not match with your actual tuition payment paid to the school in 2017, you would check “No” on question: “Is the amount you entered the full tuition paid to school in 2017?” and program will prompt you to enter the correct tuition paid in box: “Tuition and fees paid in 2017.” Click Next, you should see the screen: “FORM 1098-T - Now, tell us the info shown in Boxes 3-10”, you will see box 4 “Adjustments made for a prior year’. You have amount in box 4 due to the school reimbursed or refunded qualified tuition and related expenses during the calendar year.


Regarding IRS’s Pub 970 instruction regarding the refund: “A refund of qualified education expenses may reduce adjusted qualified education expenses for the tax year or require repayment (recapture) of a credit claimed in an earlier year.” If any refund of your qualified education expenses paid in 2016 is received after you file your 2016 income tax return, you must recapture (repay) any excess credit. You do this by refiguring the amount of your adjusted qualified education expenses for 2016 by reducing the expenses by the amount of the refund. You then refigure your education credit for 2016 and figure the amount by which your 2016 tax liability would have increased if you claimed the refigured credit. Include that amount as an additional tax for the year the refund was received which is 2017. So, I would suggest that you go back to your 2016 and refigure the education credit amount in 2016. If after you make change, your tax does not change, then you do not need to make any change on your 2017 tax return. If your credit is reduced and your tax liability is increased, you will need to report the recapture of excess credit on 2017 tax return.


On the online software, you will report recapture tax under: Federal – Taxes – Click Add on “Estimated Taxes and Other Taxes, Payments and Penalties” then visit topic: “Miscellaneous recapture taxes” – Check box: “Education Credit recapture” – Hit Next, and fill out the amount you refigured on box “Education Credit recapture tax”


I would suggest you verify amount you have in box 1 form 1098-T for tax year 2017 (compare with your own records/payments) to see if box 1 includes the amount your wife paid for all the courses, included the course that has the same price as the dropped course.


Hope this help you out.



Tax Research Specialist.

The Tax Institute at H&R Block.