The IRS requires schools report what was paid in the tax year (2020) in box 1 and the financial assistance which was received by the school in 2020 in box 5.
If I understand correctly, you are saying that a scholarship was received for a period in which there were no expenses.
I am assuming that you are counting the internship in 2021 as part of 2020 if you are calling the first three months of 2021 as Spring.
So, the question is this-
If the scholarships posted in 2020, but were intended for "Spring 2021", AND you will not have expenses for Spring 2021, what has/will happen to the excess scholarship?
If the excess scholarship was refunded to the student, it is reported as income by the student.
If the scholarship is left as a credit in the student's account to be used in 2021, select that in the education interview. (Scholarship is intended for a different year). If this is the case, be sure to claim that same amount on your 2021 tax return if it is not reported on the 2021 1098-T.
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