Situation Summary
- In 2023, your university did not pay your fellowship on time.
- The fellowship was paid in 2024, and it appears on your 2024 Form 1098-T.
- Box 5 (scholarships/fellowships) shows an amount greater than Box 1 (qualified tuition).
- Part of the fellowship was used to cover 2023 qualified expenses, but the 1098-T doesn’t reflect that.
When Box 5 exceeds Box 1, the IRS assumes the excess was used for non-qualified expenses (like room and board), making it taxable income. Since the fellowship was paid in 2024, the IRS treats it as income for that year—even if it was meant for 2023 tuition. How to address this?
