@Hal_Al
RE: You did not get a refund. Your student got part of his scholarship in cash.
EXACTLY. and thank you for the clarity.
RE: That is already accounted for in box 5 of his 1098-T. Do not enter that "refund" in the 1099-Q interview.
Box 5's amount exactly matches the grand total of scholarships awarded, let's say $10K for simplicity ($8K initially + $2K later). Because I had paid the tuition already before rest of the scholarship ($2K) got awarded, the student received the $2K.
Q: Are you saying that I should ignore the $2K completely? Because is it not a refund rather it is an over-payment?
