How to answer "Did ...'s Aid Include Amounts Not Awarded for 2020 Expenses?" I'm not sure the "Learn More" info describes my situation.

[Ben82566]

Simply, my situation is that I started college in Fall 2020. I have a 1098-T form. Let's say my box 1 has "$6500" and my box 5 includes a grant of "$7000". Box 7, which says "Checked if the amount in box 1 includes amounts for an academic period beginning January-March 2021" is checked.

I only used a portion of the grants amount, say "$4000" to pay for fall 2020. The rest was used to pay for winter 2021 expenses.

When it asks "was any of the scholarship income not designated to pay 2020 education expenses?", should I click yes and type in the $3000(7000 - 4000) that was used for winter 2021?

[Hal_Al]

Deleted

[KrisD15]

No, 

the way I understand you, the amount of scholarship that is paying for the winter 2021 classes is included in Box 1 and Box 5 

If I understand correctly, answer NO, none of the scholarships (aid) is for a different year. 

That link is used when amounts in Box 5 are not reflected in Box 1. 

If the difference was used for books and/or supplies, you will get a chance to add those expenses on the following screens after the 1098-T screen.

[Hal_Al]

KrisD15 has a good point.  As I understood the question;  Box 1 only included 2020 tuition and fees, but Box 5 included the scholarship for both 2020 and the first term of 2021.

So, you need to have a handled on the details before you answer that question.

For example, if your $7000 in box 5 was $4000 for Tuition and fees and $3000 for room and board, then the answer is No.  The $3000 designated for room and board in 2020 is taxable income to you, even if you actually spent it on 2021 tuition.

[Ben82566]

Box 1 included the tuition and fees for both fall 2020 and winter 2021 for some reason, box 7 also checked that, so approximately half of the amount reported in box 1 paid for fall 2020 and the other half paid for winter 2021. The scholarship & grants amount reported in box 5 were used to pay the expenses for both fall 2020 and winter 2021, so my school received a specific amount of grants, applied some to cover the fall 2020 expenses and held on the rest until I registered for the winter 2021 classes and applied the rest of the box 5 amount. My school kept the money I didn't have them on hand and didn't use any to pay for room and board

[Hal_Al]

Then answer No, even though "no" is not technically correct.  For the purpose of reporting your 1098-T, it is correct, since both the  box 1 and box 5 amounts are for matching academic terms.