Q. Can I take unused scholarship money and save it for next year's qualified expense?
A. Generally, no. A 2025 scholarship cannot be used for 2026 qualified expenses, to avoid taxation. But, it depends on the scholarship intent. For example, if a full year scholarship was applied to your account in September 2025 and is still in the account when the 2026 bill is posted, then yes.
In the TT 1098-T interview, you will reach a screen that allows you to adjust the scholarship amount for "amounts not awarded for 2025 expenses".
