Thank you both so very much! This turned out to be a lot more complicated than I anticipated - since that's the first time we are dealing with scholarships and AOTC.
If I may ask you to clarify it one more time about AOTC - Even though, we only had $2000 of qualified educational expenses (computer, books) that we (parents) paid out of pocket, TT still takes additional $2000 from the tuition paid (to bring the total of qualified expenses to $4000) in order to calculate maximum credit of $2500. Do i understand it right?
Also, Q.4 - One of the scholarships she received for academic year 2023-2024 is not reported on 1098-T form - I am assuming because it technically has not been received in 2023, but in early January 2024. So it will eventually be reported by the school on the 2024 1098-T form, is that right?
I am asking this, because my total of all the scholarships she received for the academic year 2023-2024 is higher (by the amount of that one scholarship) than the reported by the school. By the way, I don't have a record of when it was sent to the school since it is sent directly by the state (Hope scholarship).
I guess I am also trying to understand, if she is allowed to report this scholarship on 2023 tax year, even if it's not added on 1098-T?
Thank you so much for your help!
