If you paid for classes that start in early 2022 in 2021, you must include them for the 2021 educational credits. If the 1098-T Box 1 amount is less, (actually regardless of what the 1098-T has) you should keep copies of receipts and statements that show you made the payments and attended the classes. And yes, you will have to reduce the 2022 1098-T by any amounts included in 2021.
I always tell taxpayers to keep a running total of expenses, payments, etc for the Educational credits in case of audit. You need to be able to substantiate that there is no double-dipping which gets even more complicated when there are scholarships and ESAs involved.
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