Your 1098-T is for 2023 so all of the box 5 scholarship is reported on the 2023 return but it is reduced by all legitimate tuition, fees, books, etc.
For example: Box 1 $10,000 Box 5 $18,000.
This goes into return and the program will automatically subtract box 5 minus box 1 to create taxable income. You can enter any other expenses paid from the scholarship money to reduce the amount more.
If you paid 2024 tuition in 2023, it can be included on the 2023 return. Tuition paid for the first 3 months of the next year also qualify, See page 12, What Expenses Qualify at IRS Publication 970, Tax Benefits for Education.
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