Q. What if I don't claim the AOTC this year and claim her 4th year of AOTC on 2021 taxes?
A. Yes, you can delay it if it works out better. Although you can only use the AOTC 4 time, you can use the Lifetime Learning Credit (LLC) for the other calendar year. The LLC is 20% of QEE up to $10,000. No part is refundable.
The 1098-T is only an informational document. The numbers on it are not required to be entered onto your tax return. However receipt of a 1098-T frequently means you are either eligible for a tuition credit or deduction or possibly your student has taxable scholarship income. If you claim the tuition credit, you do need to report that you got one or that you qualify for an exception (the TurboTax interview will handle this)
You claim the tuition credit, or report scholarship income, based on your own financial records, not the 1098-T. If you don't know what the box 4 amount is for, ignore it.
