"Enter your 1098-T exactly as is even if the amounts are wrong (this is common). You'll get a chance to correct this info and enter additional expenses later in the Education interview."
This is what I am confused about for our tax situation. Can you correct the expenses and scholarships? I am having trouble interpreting the meaning of some of the questions and how to respond.
In our situation, we have a freshman whose 2019 1098-T included Fall 2019 and Spring 2020 qualified expenses. The Spring 2020 expenses were paid in Spring 2020. Do I include Spring 2020 on 2019 taxes as it shows on the 1098-T?
On the same 1098-T, another problem I have is the scholarships reported. Only part of her scholarships for her Spring 2020 semester showed up on the 2019 1098-T. So, if we report Spring 2020 qualified expenses in 2019, there will be scholarships that we won't be able to match with expenses for the 2020 tax year, not considering Summer/Fall 2020 qualified expenses.
For 2019, if we keep the information just like it states on the 1098-T, we will have more than enough to meet the amount needed to figure the Amer Opp Tax Credit. But, just looking at the Spring 2020, we will already be in a hole if the scholarships are not matched the same.
In addition, to add a little further complication, she received a scholarship that went straight to her bank account with no stipulation on how to use it. I am assuming the best thing to do is to use it toward NON-qualified expenses. Would that scholarship be reported on our return or hers? There was no tax form received. If we include it on our return, I would think we would need to report the unqualified expenses as well.
Thank you in advance for any experience that can be shared.
Cindy
