Hello,
We are filing our own taxes for the first time and everything is going great except one specific case and we cant find clarity on.
We received our daughters 1098t for 2024. Box 1 is 18000, Box 5 is 12000. All other boxes are 0. There is a specific question that says:
"Have you received any tax-free education assistance in 2025 related to the 2024 academic period?"
We dont know if we should answer yes or no. Our school reported all the costs for the spring 2025 semester in the 2024 1098t form. It applied some, but not all of our scholarships. There is a 3300 pell grant and 500 tuition incentive program grant that was applied to our school account in the first week of January 2025. And we are assuming that will be apart of the 2025 1098t form for next year.
So do we answer "no" and claim the full aotc or "yes" and report the 3800 as part of "Have you received any tax-free education assistance in 2025 related to the 2024 academic period?"
Thanks.
