Question
1098T no tuition in box 1 because billed last year
My daughter graduated in May 2021. Her tuition for spring 2021 was paid in Dec 2020. Her partial scholarship was posted in 2021. The scholarship does not cover full tuition, but on the 1098T she has 0 for tuition in box 1 and 12850 for scholarship in box 5. Entering this created a tax penalty of about 1500$. All the scholarship went to tuition and didn't cover it. It doesn't seem like that should be treated as taxable income. How should I deal with this so that she doesn't need to pay extra taxes?
