I had just started school in February, 2008 and I received a form 1098-T this tax season. There was only 1 box with any dollar amount in it. I didn't file t this year with my taxes, as I was told that I cannot use it to claim anything until next year. Was this correct, or should I have filed it this year? I didn't attend school at all last year, and the amount on the 1098-T was more than my federal loans was for, so I am a bit confused. Should I file an amendment to my return or will I file this the next 2 years?

Educational Institutions are required by IRS Section 1.65050S-1 to send Form 1098-T to students for whom payments for qualified billed tuition and fees were received in calendar year 2007.

Form 1098-T has been provided to assist in determining if you, or the individual, who may claim you as a dependent, are eligible to claim a Hope Scholarship or Lifetime Learning Credit on the 2007 year income tax return. Or you can claim deduction up to $4000.
Box 1--Payments received for qualifying tution and related expenses.
Box 2--Amounts billed for qualifying tution and related expenses.
Box 5- Scholarships and grants.
Box 8--Check if at least half time student.
Box 9--Check if a graduate student.

Assuming the Form 1098-T was for 2007, if you pre-paid tuition costs in 2007, THAT is the year you must claim the education credit or deduction.

Because you started your schooling in the first THREE months of 2008, the payment DOES qualify for claiming either the Hope or Lifetime Learning Credit for 2007.

So it is possible that an amendment is in order.

If you need my professional help, send me a private message or email me at [email protected].