Should my tuition waiver be included in Box 1 if it was paid by the school and included in box 5?

[amym4189]

I worked as a graduate assistant and received small monthly stipends and tuition waivers. This year my box 1 shows what I paid and box 5 includes the waivers as a scholarship. The waivers are not included on my W-2. It therefore appears as if I received a large scholarship but only paid a minimal qualified expense. Is this difference taxable and if so, how do I report it?

[pk]

I am not sure I truly understand the situation -- so let me re-iterate what I see from you post.-->

(a) you receive a stipend  as a Grad TA -- this amount shows up on your W-2---yes?

(b) to record the  tuition waiver, you received a 1098-T with Box -1 showing  the portion of Tuition that you (?) paid - why is there an amount that you paid since  tuition was waived?  

(c) Box 5 of 1098-T shows the total tuition waiver amount as scholarship.

Therefore the question is whom pays the taxes (if any ) for the difference  amount between Box-1 and Box-5 ? 

Cannot really answer till I hear from you on my questions.

Generally I would have assumed that Box 1 would show the total amount of  Tuition Paid  ( irrespective of source). And Box 5 would show the total amount of scholarship.  This would show that all of the scholarship was used for qualified educational purposes  and therefore not taxable ( to the extent used for  qualified educational expenses ).

[amym4189]

Sorry if I have been unclear.

(a) I received a very small monthly stipend as a Graduate Assistant (not teaching, if that makes a difference). This was the only thing on my W-2.

(b) There is an amount due to fees that were not covered by the scholarship and an extra class I paid out of pocket for.

(c) Correct

However, box 1 only shows the fees/extra class I took and does not include the scholarship amount that was received via waived tuition/credits. Box 5 does include the scholarship. Therefore, my understanding is that it appears that I received a $XX,XXX scholarship but only paid educational expenses for ~$2,000. Please let me know if further clarity is needed. Thank you.  

[pk]

I see --- thank you for the explanation -- it makes sense. You are correct.  You need to get the  school to issue a corrected  1098-T --- because  either (a) Box 1 should include all the fees  paid  OR paid on your behalf  OR they should take out the scholarship   because you did not receive anything  ( went fro one pocket/account of the school to another ).  It is possible that they may take the position that you have to pay the tax on this scholarship amount ( that I think would be unfair but the giver makes the rules).  Good Luck