maglib
Level 11

Get your taxes done using TurboTax

If the scholarship was for a prior year, you should have entered it in that years tax return. You are a cash basis payer and always report cash basis. Let's say though you are billed and paid for 2018 spring tuition in 2017 and were getting a scholarship that isn't reflected in the 1098-T as it will be on 2018's. You MUST report monies for 3 month period of time after. So the scholarship which will be on the 2018 1098-T  must be entered on the 2017 tax return or you may get education breaks you should not be claiming.
The 1098-T is informational purposes and is not necesarilly cash basis, often it is accrual so there be adjustments to it.  You enter it in the education interview and in the scholarship section, there are further questions to allow you to indicate the scholarship was for another year. If you didn't report it in a prior year, or its for 2018  and it would have changed your education credits or created a change in taxes, you must amend the prior year. Any monies related to a future year, you must remember to report then.

A scholarship or fellowship grant is tax free (excludable from gross income) only if you are a candidate for a degree
at an eligible educational institution.

Candidate for a degree. You are a candidate for a degree if you:
1. Attend a primary or secondary school or are pursuinga degree at a college or university; or
2. Attend an educational institution that:
a. Provides a program that is acceptable for full credit toward a bachelor's or higher degree, or offers a program of training to prepare students for gainful employment in a recognized occupation; and
b. Is authorized under federal or state law to provide such a program and is accredited by a nationally recognized accreditation agency.
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I am NOT an expert and you should confirm with a tax expert.