Q. I only had box 7 checked on last year's 1098T. So i replied "no" to that question for the current year. Is that correct answer?
A. No. Reply yes, because box 7 was checked.
Your statement "form 8863 always asks if the previous year 1098T had box 2 AND 7 checked" is erroneous. There is no check box for box 2 and form 8863 does not ask if box 2 was checked. On