AmyC
Expert Alumni

Deductions & credits

You are correct that since  the scholarship was for a different year, it can be subtracted. The issue becomes that it needs to be added to the 2023 scholarship amount. If that affects your return, then you would need to amend. Or, if it creates more income for the student, they can amend.

 

If you took the education credit, give it to the student as income. A few dollars of taxes is much better than thousands lost on your return. You only need $4,000 of student tuition on yours. See What You Need to Know about AOTC and LLC.

 

The IRS has a great brochure that explains how scholarships and tax credits interact.

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