Often scholarships post the year after tuition is billed and paid.
If a scholarship posted in January 2024, but was for classes that were billed/paid in 2023, you can select "Was any of the scholarship in Box 5 for a different year? " and then enter that amount. Basically you are telling the program to subtract that amount out of box 5.
BE AWARE that if a scholarship on the 2024 1098-T paid for something in 2023, the 2023 1098-T might have an inflated amount in Box 1.
If you are saying "Part of Box 5 on the 2024 1098-T was for 2023" Then you also have to say "Part of Box 1 on the 2023 1098-T was paid for by a scholarship (that posted in 2024)."
With this logic, you should look and make sure that you did not use the full amount on the 2023 Form 1098-T for a credit on your 2023 Tax Year return.
It is always a good idea to look at the students school statement and match it to Form 1098-T so that:
- You don't claim income for a scholarship that crossed calendar years
- You don't claim expenses that were paid with a scholarship that crossed calendar years.
IRS Pub 970
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