Q. Could we have claimed $5000 of the charges as expenses paid in 2022 to match the student payment of $5,000, and then $5,000 of the expenses as paid in 2023 to go with the $6,000 in scholarships, grants, and loans?
A. Yes, could and should, because you know that was when the $6000 was actually paid. The school was wrong to put the extra $5K in box 1 of the 2022 1098-T. But, we see it all the time. They post the 2022 "charges" to box 1 and they're supposed to post the payments.
Q. But if in 2022 we claimed all the expenses charged in 2022 as paid in 2022, then the full force of the scholarships and grants hit in 2023 without the expenses to help offset them. Do I have that right?
A. Yes. Or more accurately, probably yes. It wasn't "wrong" to count it for 2022, it just wasn't as right. You coulda done it differently, last year. And you have the option of amending last tear's return. But, one way or the other you have to account for the scholarship.
