Looking over her 2023 and 2024 1098-T, here is what I am seeing.
On 2023 1098-T , the school reported in Box 1 tuition paid for Fall 2023 and Spring 2024 (academic year, instead of tax year) -$11250. In box 5, the school reported private scholarships but did not report Hope scholarship (that is specifically designated for state tuition for Spring 2024. Most likely, the school did not receive this state scholarship in 2023, so they did not report it in total scholarships received in 2023 (box 5).
They reported it though on 2024 1098-T. It is in the amount of $5129 and specifically applied to the semester of tuition at this state school.
We used the numbers off 1098-T as reported by the school on the 2023 tax return.
On 2024 1098-T, the tuition paid (Box 1) is only for Fall semester ($5758) and total scholarships received include all the ones received in 2024, including that Hope scholarship I mentioned above.
Going through TT questions on Deduction and Credits for 2024 tax return, I am using again all the numbers as provided by the school 1098-T. Then I come to this question:
How much of the total ($20,000) received in scholarships, grants or other aid was not designated for 2024 expenses?
Can I answer Yes - and show the amount of $5129 in this box?
My reasoning is that this scholarship was received in 2024, but the tuition expenses it is designated for were reported in 2023. Is it a correct reasoning based on what i see on these 1098-T forms?
Please, explain if it is not correct. Thank you very much!
My concern is if I do this, I would need to amend 2023 tax return somehow???
