Q. 1098-T box 1. Should that match to the total amount of fees the the College charges to attend for that year?
A. No.
First, it is not the amount charged. It is the amount actually paid, regardless of source (scholarships, loans, out of pocket, V.A., employer assistance, 529, grandma).
Second, it is not all "charges" or expenses. It is only tuition and academic fees. Room and board are not included as well as some non academic fees (e.g. health or student activity).
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The 1098-T is only an informational document. The numbers on it are not required to be entered onto your tax return. However receipt of a 1098-T frequently means you are either eligible for a tuition credit or possibly your student has taxable scholarship income.
If you claim the tuition credit, you do need to report that you got one or that you qualify for an exception (the TurboTax interview will handle this)
You claim the tuition credit, or report scholarship income, based on your own financial records, not the 1098-T. In the 1098-T screen, click on the link "What if this is not what I paid the school" underneath box 1. You will then be able to enter the actual amounts paid. You will also reach a screen that allows you to adjust the scholarship amount for "amounts not awarded for 2022 expenses".
Or if you find it easier, just change the numbers in boxes 1& 5 to what your records show. The 1098-T that you enter in TT is not sent to the IRS.
If the student is a dependent, the 1098-T is entered on the parents tax return to claim a tuition credit. It is entered on the student's return if taxable scholarship is being reported. There are times when it is entered in both places, but then adjustments must be made.
