1098-T: Box 1 and Box 5 Discrepancy

[user17701703838]

Hello! I finished my 8th semester of college (4th year) in the spring of 2025. This was technically for a graduate program, but I was a full time student and hadn't exceded 4 years of college. For this semester, I received a $6500 scholarship that went entirely towards tuition. Additionally, I paid $2,404.16 out-of-pocket for the remaining balance of this semester on 12/6/2024. 

On my 1098-T, Box 1 is blank (reflecting that no payments were received for tuition), Box 5 contains $6500 (reflecting my scholarship), and boxes 8 (at least half time student) and 9 (graduate student) are checked. When entering this information into my return as is, this $6500 is reflected as income for the year. In reality, all of it was used on tuition. 

I was unsure if I would qualify for any credits since the payment I made was technically made in the previous tax year (2024), but I don't see why I would owe taxes on scholarship money that went entirely towards tuition. Is there a way for me to report this, or should I contact my school? 

[SusanY1]

Since you used all of your scholarship for tuition, there should be no taxable income.  

The 1098-T form only needs to be entered when you're claiming credits.  Those are based on tuition/fees only and room and board don't count for purposes of the credit calculation.  

You can remove your 1098-T form from the tax return and that will resolve the issue of the income showing that should not be reported.  

[user17701703838]

Thank you for the reply! From how I understand it, a copy of the 1098-T is sent to the IRS as well, correct? If that's right, is there no repercussion to not reporting a form on my return that the IRS received? 

[LeticiaF1]

Correct, even though the IRS gets a copy of your 1098-T, there would not be a problem if you do not report the form because there is no taxable income and no credit.  

@user17701703838