Thank you for the reply. I want to make sure I get this right. Am I understanding correctly that I can adjust my 2021 education calculations based on these 2 refunds since they were for the spring 2022 semester which we had paid for in December 2021? For our 2021 return, we had plenty of excess education expenses to make these 2 refund adjustments without it changing our tax liability. Here are the 2021 numbers:
1098-T: Box 1 $7,000. Box 5: 0 (no scholarship)
We applied $4,000. to the AOTC
room and board paid in 2021: $10,200.
529 distribution: $5,000.
With the adjustments for the 2 refunds, we still have excess expenses based on my calculations, right?
If so, can I leave the 2 refunds off of our 2022 taxes and make no adjustments for them?
(In this case, I would not adjust the 1098-T Box 1 number AND I would answer "no" to the question "did you receive a refund of qualified education expenses?" on TurboTax for my 2022 tax return? Is this correct?)
Also, if I adjust/reduce the education expenses for 2021, is it ok that one adjustment is due to a scholarship and one due to housing/dining? Your quote from the IRS indicates qualified education expenses, so I wanted to be sure.
