<p>Hi there. I was hoping someone can help with a ques regarding Scholarships/Tuition. My son is a sophomore, receives scholarships/federal grants to cover all tuition/fees, room/board. He will be paying taxes on the monies that exceeded the tuition/fees. His FALL 2011 tuition, room/board was billed in Aug2011 & mostly paid the same month, however, two grants worth $6100 recently posted in JAN 2012 that applied towards the FALL 2011 term. My question is do I report those grants processed in JAN2012 (which again was for FALL 2011 charges) on my 2011 taxes or should I wait and file with 2012 taxes next year? I would rather wait and file in 2012 since it was paid for in 2012 if I am allowed to do so. This way my tax reporting method would be consistent with last years return since I based everything on a tax year and not what a 1098T reported. Any help would be greatly appreciated!</p>
<p>Did the grant money reimburse you for something that was actually paid in 2011? It seems odd that there would be money owing from fall semester and nothing paid until January (unless your semester didn’t end until January)…in that case I think it should be filed for 2011 taxes. But if it was actually paid in 2012 then I see nothing wrong with waiting for the next tax filing year.</p>
<p>bchan1, thanks for your reply. I finally found out what happened with this transaction. The 2 grants were actually disbursed in 2011, one was for $4105 (univ schlr) & the other for $2000 (SEOG federal grant). On 1/6/12, their was a reduction to the SEOG grant to $1000 instead of $2000 so the univ schlr was increased by a $1000 to make up the difference lost on the SEOG. So in the end everything equalled out. Both grants totaling $6105 was disbursed in 2011, and the adjustment in 2012 was $6105 as well. Thanks again!</p>