The scholarship ($5129) is actually reported for the right year when it was received - in my case it is 2024 - In other words, it was received by the school in 2024 and it applies to Spring 2024 tuition. But the tuition expenses for Spring 2024 was reported by the school on the 2023 1098-T - I was puzzled by it last year, but used it as it was reported. So I imagine it lowed my student's taxable income.
This year, the school reported this scholarship ($5129) in the total scholarships received in 2024 - which is correct. And it is for 2024 tuition expenses. But the tuition expenses were reported last year in 2023. So the tuition expenses the school reports is only for one semester Fall 2024 and not both Spring and Fall 24, which is more logical for a tax year. So she has quite a large taxable scholarship income this year because of it.
So if I were to adjust the tuition paid in 2024 to include both Spring and Fall semester, then I would also have to amend last year taxes to exclude the Spring 2024 tuition paid (that the school reported on 1098T and I used in her tax return for calculating the taxable scholarship amount), right?
Do i make sense?
thank you both for trying to help me in this messy situation!
By the way, we don't qualify for AOC right now. So I am just trying to process these scholarships versus educational expenses in the most favorable way for my student.
