Will I be taxed for scholarship money that was used to pay for tuition?

[dcgreer57]

 Box 1 of 1098-T only lists the $100 in fees I paid and does not include any of the scholarship money (tuition remission) that was applied to tuition.  Box 5 gives the total of tuition remission ($15k all applied in 2018) and room and board scholarship monies ($9720 - of this $4100 was applied in calendar year 2017 not 2018).  Is the information on the 1098-T accurate?  Shouldn't Box 1 include scholarship money used by school toward tuition? Shouldn't Box 5 only have tuition, room and board scholarship money that was applied in 2018?  Do I need to adjust the numbers  in Box 1 & 5 of the 1098-T in TurboTax?

[KrisD · Accepted solution]

Use the student school account statement and compare it to the 1098-T. Keep a copy of each with your tax file. 

Enter the 1098-T and click the "What if this is not what I paid?" link under Box 1 if you need to adjust what the school received in 2018. If the tuition reduction was also reported as a scholarship in box 5, you could add the amount in box 1. 

After you enter the 1098-T, continue through the interviews where you will be asked if any of the scholarship was allocated to a different year. Adjust for the 4100 here. 

[dcgreer57]

Thank you so much Kris!!  Just to clarify - the amount in Box 1 is any money the school receives in the given calendar year (in this case 2018) to pay for tuition and fees whether it is from me directly or through scholarships, grants, tuition remission, ...?    

Also room and board is considered taxable income even if required to live on campus?