Does excess financial for the Fall 2021 - Spring 2022 academic year count for 2021 tax or 2022 tax, if the refund was sent out in mid January 2022?

[merkel14]

My 2021 tax return lists taxable wages/salaries/tips much higher than what I earned on my summer 2021 internship W-2 form. So the difference must be the excess financial aid (non-loans) I received for the school year.  Except the math is not very close at all when I use the difference between qualified expenses (box 1) & scholarships/grants (box 5) on my 2021 1098-T. Are 1098-T forms, and taxable excess aid, based on the aid year or the fiscal tax year?

[rjs]

Form 1098-T is based on the calendar year. Your 1098-T for 2021 should report the tuition you paid in 2021 and the scholarships or grants that you received in 2021.

If you look at your Form 1040, to the left of the total wages on line 1 there should be a notation SCH and the amount of taxable scholarship income that is included in line 1. See the following FAQ for instructions to view your Form 1040 in TurboTax Online.

How do I preview my TurboTax Online return before filing?

[Hal_Al]

Q. Does excess financial for the Fall 2021 - Spring 2022 academic year count for 2021 tax or 2022 tax, if the refund was sent out in mid January 2022?

A. The year  it was posted to your account. So, most likely, 2021. 

Q.  Are 1098-T forms, and taxable excess aid, based on the aid year or the fiscal tax year?

A. Aid year and is usually included on the 1098-T.

But, if that's not the case, you will  reach a screen, in TurboTax,  that allows you to adjust the scholarship amount for "amounts not awarded for 2021 expenses". 

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.  You claim the tuition credit, or report scholarship income, based on your own financial records, not the 1098-T.