No 1098-T Form But I Still Owe Money

[AnonymousFox]

I did not receive a 1098-T for my 2022 school year. I contacted the school, and they informed me that my expenses were 0 and that I had a $15,000 scholarship for 2022. I paid $18,000 for the 2022 semester, but it turns out I paid the for the 2022 semester in December 2021, so it was not included on my unofficial 1098-T. When I put the $15,000 scholarship into TurboTax, it says I owe $500 even though the entire $15,000 was used on my tuition. Is there anything I can do to reduce the amount I owe or am I stuck? $500 is a lot for me right now.

[Bsch4477]

Tuition you paid in December, 2021, can be used as an education expense on your 2021return. So if you did not use it then you can amend that return. 

[Hal_Al · Accepted solution]

Q. Is there anything I can do to reduce the amount I owe or am I stuck? 

A.  Just don't enter anything in TurboTax.  You apparently have nothing to report, as the scholarship was for qualified expenses, even if the reporting year is off.  

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. 

It appears that the $15,000 scholarship reimbursed you for the 2022 payment you made in 2021. So, the scholarship was for 2022 expenses and is not taxable. 

But, since you actually paid in 2021, you cannot claim a tuition credit on your 2022 return. If you paid $18,000 in 2021 and were only reimbursed $15,000, you can claim $3000 toward a 2021 credit.  There is a $4000 limit on credit expenses, so if you already claimed that much on your 2021 return, the extra $3000 won't do you any good.