Should I enter a different amount than on 1098-T since tuition is billed for 1 semester but scholarship is credited for 2, eliminating tuition credit?

[lyndamclean]

Our tuition billed in 2015 covered one semester of school(one semester was billed in 2014). The scholarship amount shown on the 1098-T covers both semesters of 2015 school. When I use these numbers it looks as though scholarship exceeded tuition and I am not eligible for a tax credit this year. Can I adjust the scholarship amount to cover one semester?

[MollieB · Accepted solution]

You can only get a credit for education expenses paid in the tax year.  Therefore, your qualified education expense for 2015 would be the expenses you actually paid in 2015.   A lot of schools report to the student the amount that was billed for the year in box 2 of Form 1098T.  This may not always be the same as the amount paid.  You will need to adjust the amount on your 1098T to reflect the amount actually paid for the year.  To do this, click on the link titled "What if this is not what I paid to this school" under box 2 on the 1098T screen.  You can adjust the amount to what was actually paid here. 

You should allocate the scholarship to the academic period it is received for.  Sometimes there is a timing difference that can make the information on 1098T's incorrect. If you only paid for the one semester in 2015, only enter the scholarship income for one semester.  You will need to remember to report the additional scholarship income next year. 

[Hal_Al]

Simple answer: yes.

This assumes you don't "double dip". You can't claim a credit based  on your erroneous 2014 1098-T and then adjust your 2015 1098-T.

But, a bigger issue may be: it is too late to file a 2015 tax return and claim a refund. If the tuition credit will only reduce the amount you owe, then you can still claim it.