Promise Grant Includes Funds for Next Year

[2muchtax]

Promise Grant funds include education expenses for 2022 and 2023.

In Turbo Tax, where it asks, "Was any scholarship income not designated for 2022?" Do I say Yes and enter the amount that applies to 2023 enrollment expenses?

[KrisD15]

If the 2023 expenses are listed on your 2022 1098-T, (in Box 1) answer "No." 

If the Grant posted in 2022, but will not be used until 2023, (the expenses are NOT included in Box 1 of your 1098-T) answer "Yes" and that amount. 

(Additionally, if a Grant posts the year AFTER, you would answer "Yes".)

[2muchtax]

What if we did not receive a 1098t? The school said they would not be sending one.

[Hal_Al]

Q.  Grant funds include education expenses for 2022 and 2023.

In Turbo Tax, where it asks, "Was any scholarship income not designated for 2022?" Do I say Yes and enter the amount that applies to 2023 enrollment expenses? What if we did not receive a 1098t? 

A. you usually only get that question after entering the 1098-T, so that you can make any adjustments. Furthermore, the school appears to consider the years expenses and scholarships matched and you don't need to be entering anything. 

That said, you claim the tuition credit, or report scholarship income, based on your own financial records, not the 1098-T.  You match them (expenses & grants) as you think they should be matched.  Just be consistent. If you say, on your 2022 return,  that part of the grant was applied to 2023 expenses, follow the same accounting when you file your 2023 return.