My son is a high school student taking duel credit classes. He received a 1098-T from the college and it is reporting he received scholarships or grants. We did not receive any funds from the school. This amount is more than the billed amount; therefore

[anns9909]

Why is this reportable income when we didn't receive any money? All fees are paid through his private school.

[MargaretL]

If the full scholarship in box 5 exceeds tuition (box 1 or 2), the excess is considered taxable income, regardless whether you received the funds or how they were distributed. There is no credit and taxable difference is reported as income on student's tax return. 

The good news is: if excess scholarship is his only income and it is less than $6300 for the year, your son is not required to file at all.  

If student's earned income (such as W-2), when added to scholarship exceeds $6300, then he is required to file his own tax return. When he files -  be sure that he indicates on his tax return he is being claimed by someone else.