1098-T forms are informational rather than a tax form. They can be adjusted to fit your circumstances, unlike interest earned at the bank. Unfortunately, we see a hit somewhere along the way fairly often, usually the senior year. The timing does make a difference. Scholarship income must be claimed in the year received. Education expenses are claimed in the year paid. You can claim tuition paid during 2023 to any Eligible Educational Institution - Internal Revenue Service. The blank 1098-T may show that you had additional expenses. See Qualified Education Expenses - Internal Revenue Service
The IRS has a great brochure that explains how scholarships and tax credits interact. It states that scholarship income can be "Excluded from student’s income if used for tuition and related expenses. In this case, the scholarship must be subtracted from expenses that would qualify for the AOTC or LLC" In your case, the tuition is the following year so not currently available for AOTC or LLC. Could you fight and win?
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