Since she received $18,500 in scholarships for the fall and spring semesters in 2021, it would be best to report that on 2021's tax return to match it with the tuition expenses paid. That will help prevent having taxable scholarship income on her 2022 return.
In 2022, you will reduce the amount of scholarship income reported, by reducing the amount reported on form 1098-T by the amount added in 2021 but not listed on the 2021's form 1098-T.
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