I have a similar situation. Helping a friend do their taxes. Their daughter has a 1098T for Tuition for $20,944 with scholarships of $16,951.
Her 1099Q reflects a gross distribution of $16,019 with earnings of $8,826 leaving a basis of $7,193. One of the distributions was made on 12/21/21 in the amount of $4,629 which was NOT reflected in the gross tuition total. (Her parents have a statement from the university showing it posted in early January) She has other expenses (room/board, etc) not reflected on 1098T in the amount of $5,797. All monies were used for college expenses.
What are the tax implications here and do the parents qualify for the OTC?
