Yes, with the education credits, you do have options when it comes to allocating expenses, scholarships, and distributions.
As long as all the aid (distributions, scholarships) are accounted for, you can apply them the way that makes the most sense and results in the best tax situation, HOWEVER -
you can never claim as income a "restricted scholarship" nor VA assistance. Those two types of assistance must be allocated to the tuition or expense it was awarded for.
@mkschoenle
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