I understand that education expenses and scholarships do not always land in the same tax year that they apply to. My daughter's last 1098T does not show qualifying expenses for 2019 because they were billed in 2018. Since there are no expenses to offset the scholarship in 2019 the scholarship is now considered taxable income it seems. However the type of scholarship she has is only able to be used for qualifying expenses and there is no excess. Since this type of scholarship is designed to not be taxable how is the fact that it has now become taxable rectified in the tax process?
