Can I credit qualified educational expenses from the first 3 months of 2022 to a taxable scholarship earned in 2021?

Forum|Forum|4 years ago
March 21, 2022
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Can I credit qualified educational expenses like a computer and textbooks that I bought in the first 3 months of 2022 towards a scholarship I earned in 2021?

Best answer by Hal_Al

It depends on the details. If the scholarship was posted to your account in 2021 and the school applied the money to your qualified expenses billed in 2022, then yes.

But no, you can not apply that money to expenses like a computer and textbooks bought, outside the school account, in the first 3 months of 2022.

Hal_AlAnswer

Employee

It depends on the details. If the scholarship was posted to your account in 2021 and the school applied the money to your qualified expenses billed in 2022, then yes.

But no, you can not apply that money to expenses like a computer and textbooks bought, outside the school account, in the first 3 months of 2022.

buzzingbee11Author

@Hal_Althank you so much for your help!

Hal_Al

Employee

Q. What if the 2021 scholarship did not go through the school? It was awarded directly to me.

My first reaction was: it got real simple. The money was received in 2021 but not spent until 2022. There's no match. You can't credit textbooks/computers bought it in the first 3 months of 2022 to that scholarship.

But, again, it depends on the details. Who gave you the money? When did they give it to you? What was the intent/purpose? Is there something in the nature of the money that makes it taxable, regardless of how it's spent. See: https://www.irs.gov/taxtopics/tc421 & https://scholarshipamerica.org/blog/the-big-questions-about-scholarship-taxability/