1098-T with Box 7 checked

[NaiaKelley]

Hello. 2024 was my first year in College and I received some scholarships/grants. Now, as I am filling out my 2024 taxes, I notice that Box 7 is checked, and some of the reported scholarship/grant income applies to 2025. There is a question that asks "Was any of the scholarship income not designated to pay for 2024 education expenses?" When I click the 'Learn More' button, it gives an example about scholarship money reported on 2024 actually being used for 2023 expenses; aka, for the prior year. Do I answer this question with the amount of scholarship/grant money that is meant for 2025, aka the upcoming year, or is it only meant to be for prior years? I know the exact amount that is intended for 2025 expenses, however I am not sure if that will cause problems when I file my taxes next year. Thanks.

[AmyC]

You can exclude the 2025 amount for TY24 and then be sure to include it when you do your TY25 return. No problem, you have all the paperwork!

Reference: Pub 970