Is 1098-T box 1 taxed differently than box 2?

[bobmac75]

My son receives a 1098-T.  In 2016, 2017 & 2018, box 5 exceeded tuition.  In 2016 & 2017, grants in box 5 exceeded tuition.  Tuition paid by the grant was reported in box 2, and the difference was not taxed. In 2018, tuition was reported in box 1, and he has to pay tax on the difference.  Is the 1098-T incorrect or has the tax law changed?

[macuser_22 · Accepted solution]

in 2016 & 2017 box 2 was the amount "billed" not actually paid.    Box 5 scholarships in box 5 that exceeded the amount actually paid should have been taxable income in 2016 & 2017.  You might need to amend and pay the tax.

In 2018, box 2 had been eliminated and only tuition paid can now be reported.