Education

Form 8863 line 22 (3) reports if box 7 was checked on your 2020 1098-T. 

The answer should show as "No", UNLESS the 2020 Form 1098-T had a number in Box 2 which is doubtful. Box 2 has not been authorized for use since 2016, but on occasion a school still (incorrectly) uses it. 

The only screen that asks about the 2020 1098-T box 7 first asks about the 2020 1098-T Box 2. 

You should PROBABLY be answering "Yes"  to "Did you get a 1098-T from this school last year" and PROBABLY "No" to was there an amount in Box 2,  in which case the program does not ask about Box 7. 

IF your 2020 1098-T has an amount in Box 2, you would need to answer the question about Box 7. Please check the 2020 1098-T to verify there is no entry in Box 2. If there is, then you need to continue and answer about Box 7. 

The only time the program asks about Box 7 for the 2021 Form 1098-T is on the 1098-T entry screen. 

Please revisit the entry screen for the 1098-T and edit if necessary. If the 1098-T was uploaded, it may need to be manually entered. 

The idea behind the questioning is this-

Years ago, schools reported what was BILLED in a calendar year (Box 2) but the IRS only cares about what was PAID (Box 1). IF a school uses Box 2 to report what was BILLED, Box 7 comes into play BECAUSE you can include the expenses of the first three months of the following year IF they were paid ahead. That is what Box 7 indicates. 

So for 2021, you can claim expenses PAID for 2021 and/or the first three months of 2022. (of course next year you can't again use those same expenses) 

If the school correctly uses Box 1, Box 2 is not needed nor used. 

Since you are using TurboTax Desktop, you may want to check for updates before revisiting the Education Section.