Thanks in advance to @Hal_Al or anyone else who knows this answer. For a couple of years, I have used the 1098-T numbers to take the AOTC credit for my college student who receives a scholarship. The scholarship shows up in the semester it is used. The college traditionally sends a statement in December itemizing their disbursements with the total amount reduced with scholarships and loans. I pay this remaining amount in the next calendar year, in January. The amount reported on the 1098-T form, as best I can tell, shows the amount parents pay, loans pay, and the Qualified expenses paid from the Scholarship in that calendar year. This year, my son decided to wait until January 2024 to sign up for classes. This meant that the amount the college contributed to his tuition was also moved to January 2024 instead of December. Now I am faced with the 1098-T showing that the expenses are higher than the scholarship. Turbotax shows we get no credit, and my son will now have to pay taxes on scholarships. Next year, I assume the 1098-T will show an extra semester of qualified expenses paid by the college but that won't really help for a credit. Is there a different way to account this or do I have to enforce logical consequences on my procrastinating son and make him pay for the credit and taxes? Thanks in advance for your help.
