My son started his undergraduate program in August of 2024.
We have the MET to cover his Tuition.
We have an MESP to cover his 'other college expenses'.
He received $7000 in scholarships that are showing up on the 1098-T. Because his 'tuition' expenses are covered by the MET - we only took out money from MESP to cover the Room and Board expenses that exceeded the credit from the scholarships that were applied to his account ($3500 for each semester)...which is a 'covered expense' for MESP....but 'not eligible'...for the 'scholarship money. Should I have paid for the Room and Board with MESP money...and have the $7000 refunded to my son? My son also received $5500 in other scholarships that were 'not' included in the 1098-T. Where is this money supposed to be reported? (My son will also be filing...I think he's supposed to include an additional $12,500 in scholarship over what his W-2s have.)
It is very confusing to me...the 'tax year' is 2024, but the 'college year' is in both 2024 and 2025. He purchased a book for this class beginning January 2025...we didn't purchase it in 2024, so I'm not including that book in the 2024 tax year educational expenses. The '$7000' on the 1098 form....only $3500 was received in 2024 for expenses - the other half is for the Winter term expenses - which wasn't due until January 31, 2025. (The scholarship 'credit' to the account is showing up in 2024...so all $7000 is on the 1098-T form)
