1. You want to leave $4,000 as education expenses you paid in order to claim the AOTC, if possible. Scholarship $13,690 minus room and board - rent and food = how much?
Then education cost of $8772 minus what was left of the scholarship.
For example:
Scholarship $13,690 minus R&B of $10,000 = $3,690 towards education expenses.
Education costs $8772 - $3690 paid by scholarship = $5,082 paid out of pocket for college to claim the AOTC.
2. The 1098-T says $6458. If you reported the other money paid in 2019, you certainly can't deduct it again. What did you do in 2019? Your record of $8772 was all in 2020? If so, then count the qualified expenses. You only get to deduct money paid once, pick a year and stick with it. See Publication 970, Tax Benefits for Education.
Related:
Qualified Expenses
Available Education Credits
IRS Q & A about education credits
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
