Keep a copy of your student account statement with your tax file.
If part of your grants were paid in 20159, but were for expenses of 2018, reduce the expenses for 2018. Adjust next year as needed.
According to the IRS:
Refunds received after 2018 but before your in-come
tax return is filed. If anyone receives a refund after 2018 of
qualified education expenses paid on behalf of a student in 2018 and the refund
is paid before you file an income tax return for 2018, the amount of qualified
education expenses for 2018 is reduced by the amount of the refund.
“Credit recapture. If any tax-free educational
assistance for the qualified education expenses paid in 2018 or any refund of
your qualified education expenses paid in 2018 is received after you file your
2018 income tax return, you must recapture (repay) any excess credit. You do
this by refiguring the amount of your adjusted qualified education expenses for
2018 by reducing the expenses by the amount of the refund or tax-free
educational assistance. You then refigure your education credit(s) for 2018 and
figure the amount by which your 2018 tax liability would have increased if you
had claimed the refigured credit(s). Include that amount as an additional tax
for the year the refund or tax-free assistance was received.”
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HERE for IRS Pub 970 Tax Benefits for Education
