TP is full time student and not a dependent of her parents or anyone. Her earned income is about $4500. TP received a 1098-T with $5036.99 in box 1 and $24,330.00 in box 5. She states that any excess, or refunds she receives, is used towards the next semesters tuition or qualified expenses. The students account detail shows only one semester (fall) being billed to the students account, because the university included spring semester of 2022 on the 2021 1098-T. As a result, the student has taxable income on the excess between box 1 and 5. As a result of the excess, she's not allowed any of the education credits. Is there a work around for this or is the poor child on the hook to pay taxes of over $1K on the excess. 

Any suggestions or direction would be greatly appreciated. 

Thank you.