School sent out fall 2022 scholarship late and applied it to 2023 tax year on 1098T

[joga9625]

For fall 2022 I had applied for two scholarships equaling $2475 and $2871, I received $2871 during fall semester, which was used to pay my tuition, and part of $2475 was used to cover the remaining balance of my fall tuition, and the remainder of that same $2475 was then refunded to me via check in April 2023.

When I filed my taxes for 2022 I was able to receive the AOC because my out of pocket tuition expenses were more than my scholarships awarded.

In 2023 I took a winter session course to finish up my BA and fully expected to get a refund back when it was time to file taxes for 2023. However, my 1098T has the scholarship of $2475 applied for 2023.

Am I correct in thinking that the school kind of screwed me over by reporting that Fall scholarship for 2023 instead of 2022? Especially since $1129 of it was used to cover the rest of my fall tuition, and my out of pocket payments for 2022 exceed the amount of the total of BOTH scholarships, meaning I would have received the AOC credit regardless.

Now as it stands I cannot get a refund for the winter session course I paid out of pocket for because I have that scholarship applied to my 2023 1098 T.

Is there something I can do to have that scholarship applied to 2022? Or is there a way of filling out my tax return so that I can claim my education credit for the winter session course I paid out of pocket for?

[AmyC]

You received the refund in 2023. It sounds like you paid for your class in 2023. (Your winter class may apply to 2023 depending on when you paid and if it was used in your calculations for credit in TY22.) If so, your winter class will reduce the taxable amount of your scholarship and could create a credit, if the class was more than the scholarship. Remember the AOTC is only good for 4 years and then you move to LLC.

See:

What education tax credits are available?

 Qualified Education Expenses - Internal Revenue Service

[joga9625]

I did receive the remainder of the $2475 fall 2022 scholarship as a check in April 2023. The school uses the term "refunded" what does that mean in this context exactly? And does it replace any potential refund I could have received for 2023 taxes?

What I'm mainly frustrated about is that the school used part of the $2475 scholarship for FALL 2022 tuition and recorded that whole scholarship as being received in 2023. This prevents me from receiving the AOC because box 5 exceeds box 1 on my 2023 1098T, even though I paid out of pocket in Jan 2023 for my winter session course. If they had reported BOTH scholarships on my 2022 1098T, box 1 would have exceeded box 5 and I would have still been eligible to receive the AOC when I filed my 2022 tax return AND for my 2023 tax return.

To illustrate my potential refunds, I entered my 2022 1098T information in the tax return software and added both scholarships together and the software calculates a refund of about $1200. If they had included both scholarships in fall 2022 I would have nothing in box 5 of my 2023 1098T and I would be eligible for the AOC this year. 

It feels like an oversight on the schools end. Is there a way to report my out of pocket tuition so that I can maximize my refund?

Also, I've only received AOC a total of twice.

[AmyC]

Since the refund is showing in your scholarship box, that is your answer for how they treat a refund. You can contact the school to clear up any confusion and maybe re-issue the form. The chances are that they will not change anything and you will simply have the larger box 5. 

The 1098-T is an informational form. If you have proof of paying more and receiving less, then you can use your records, if audited.