Grants and Scholarships transferring as income when they're not. 1098t form

[jguessagain]

My tax info is almost the same as last year. This year, it is saying that my grants are taxable and having me pay over a thousand dollars. I'm extremely confused about what happened. It's saying I do not qualify for the education tax break. 

[Hal_Al]

If the amount in box 5, of your 1098-T, is more than the amount in box 1, TurboTax (TT) will treat the difference as taxable income until you enter information telling it otherwise.

[jguessagain]

I hope this doesn't sound dumb, but how do you enter info telling it otherwise? 

[Hal_Al]

Usually by entering any additional expenses, you paid, that don't show on the 1098-T.  Sometimes the scholarships in box 5 were applied to a different year. Often enough, the 1098-T is just wrong. 

Tell us what your situation is and somebody might be able to tell you the work around.  Also, the 1098-T is only an informational document. The numbers on it are not required to be entered onto your tax return. 

[jguessagain]

The numbers only differ slightly from last year's return. I would just leave the info out but I do not want to be denied due to my box 5 being larger than my box1. What I don't understand is that my box 5 was also larger than my box 1 last year, but this year its considered income. 

[Hal_Al]

You will not be rejected or denied if you do not enter the 1098-T