Q. The first $5,250 was treated as non-taxable. But there were additional payments made above that $5,250 limit. That was all grossed up and taxed. So is that the amount that I should receive on my 1098-T?
A. It's not clear what amount "that" is referring to. But, it doesn't matter. The amount that the school is supposed to put in box 1 of the 1098-T is the total amount paid, regardless of the source of the money. So, expect box 1 to show the $5250 plus the taxed amount. Expect box 5 to be blank, but don't be too surprised if it isn't. You are not locked in to what the 1098-T says, if it is not correct.
