Are health insurance remissions from my university on the 1098-T form taxable income? The payments for those remissions were not included on my form.

[tmarshall1218]

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?

[KrisD15]

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.  

According to the IRS Pub 970:

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.