I'm married and filling jointly. My gross income is $125,000 and my wife is a student. She got her 1098-T and her scholarship ($53,550) is more than her tuition ($16700) for 2024. Because of this, we are been asked to pay tax of about $8600 which is ridiculous because:
1. That $53,550 is the total amount for the 16 month accelerated program which she just started in Fall 2024.
2. The difference ~$37,000, has not been given to her in a form of check or cash.
Could this be a mistake from the school? How do I enter this number to reflect exactly how much she paid in 2024?
