Hi! I am a graduate student who received fee remissions for my health insurance on my 1098-T form, but the corresponding payments for those remissions were not included on the form as well. This caused a large difference between the amounts in box 1 and box 5 which has significantly increased my taxes. Is this correct, or is there a way for me to account for the fact that the money that caused the difference went directly to my university health insurance and never went to me?
The funds that went to pay your health insurance is considered taxable income.
They will include it in Box 5 as part of a scholarship, but not include it in Box 1 as an education expense.
Qualified education expenses don't include amounts paid
for:
• Insurance;
• Medical expenses (including student health fees);
• Room and board;
• Transportation; or
• Similar personal, living, or family expenses.
This is true even if the amount must be paid to the institution as a condition of enrollment or attendance.