1098-T Issue

[luigi94]

Hello,

I'm having an issue on reporting scholarship amounts for my school. 2021 was my last semseter at the school and I had roughly 20k in scholarship reported in box 5 but the paid expenses in box 1 was only 150. The tution and qualified expenses is more than the full amount in scholarships. However, that was billed before the 2021 year but they are reporting the scholarships for 2021. Need help resolving this as the school said they can't change the amount but just send me an invoice of the expenses paid.

[AmyC]

In the 1098-T screen, click on the link "What if this is not what I paid the school" underneath box 1. Please see 2021 Publication 970 - Internal Revenue Service, particularly page 12. Look at last year's 1098-T along with your 8863 from last year and your bursar account, see if you might need to do an amended return or if last year was fine and this year is truly scholarship income. The ability to maneuver those 3 months of income may be of help to you. Unfortunately, it is common to see a graduate get stuck with a scholarship income depending on billing and receipt of scholarships versus when paid. The page 12 ruling is meant to help with that but each situation is unique.