I paid a full year of my graduate program's tuition and then was awarded a full scholarship that back-paid my tuition. The scholarship also includes a hefty award for living expenses for both years of the program.
For 2024, my 1098-T has the following:
Box 1 20,000
Box 5 81,000
Box 4 4,200
Box 1 refers to the tuition paid in 2024. However, part of the scholarship funds reported in Box 5 were used to pay my tuition from 2023, approximately $10,000. So, a total of $30,000 went directly toward tuition from the $80,000 reported in Box 5. I don't know what to make of the Box 4 adjustment reported in 2024; the financial aid office can't confirm how that adjustment was applied. I claimed the Lifetime Learning Credit in 2023. Do I need to file an amended return for 2023? And how can I allocate the funds reported in 2024 for the part that was applied to the previous year's tuition? Is it based on my own accounting for which part of the funds were applied to tuition, rather than how it is reported on the 1098-T form?
