Hi, I’m trying to file my 2025 taxes and I need some clarification.
Here’s my situation:
- Total tuition for the year = $9,559
- For one semester (tuition $4,700), I paid $2,350 upfront before the scholarship was awarded
- Then I received a $5,000 scholarship for the year
- The school refunded me $2,350 (my payment) + $300 extra
My question is: Does this refund of the money I paid affect my return? In another tax filing software, there's a question syaing “Did AAA receive a refund of any educational expenses paid in 2025?”
I’m confused because I technically got a refund of the money I paid, but the scholarship still leaves $4,559 of net tuition for the year.
Should I answer Yes or No to this refund question? How would this affect the American Opportunity Credit?
