1098-t tuition payment and scholarships in different calendar years

[ParentofTwo]

2024 1098-t Scholarships/grants for Spring 2024 belong to tuition paid at the end of December 2023 - How do I avoid these becoming taxable for 2024 when entering the 1098-t in turbo tax.

The 2023 1098-t had box 7 checked to imply some of the payments were for 2024. 

The 2024 1098-t has nothing in Box 1 but an amount in box 5.

The tax premise is that scholarships and grants are not taxable as long as they are against tuition payments.  Help please.

[Hal_Al · Accepted solution]

 The 1098-T is only an informational document. The numbers on it are not required to be entered onto your tax return. However receipt of a 1098-T frequently means you are either eligible for a tuition credit or possibly your student has taxable scholarship income. 

If you claim the tuition credit, you do need to report that you got one or that you qualify for an exception (the TurboTax interview will handle this)

You claim the tuition credit, or report scholarship income, based on your own financial records, not the 1098-T. In the 1098-T screen, click on the link "What if this is not what I paid the school" underneath box 1. You will then be able to enter the actual amounts paid. You will also reach a screen that allows you to adjust the scholarship amount for "amounts not awarded for 2024 expenses".

Or if you find it easier, just change the numbers in boxes 1& 5 to what your records show. The 1098-T that you enter in TT is not sent to the IRS.