If the scholarship was to cover room and board, it does become taxable income. If it covered a prior year's education expenses, you should amend the prior year and claim it there. This could affect any education credit claim last year.
The 1098-T is an informational form rather than a tax form which is what allows you to move that scholarship money to the correct year.
The IRS requires you to report all worldwide income, in this case, you get to pick which year and how (or if) it is taxable.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
