The words qualified appears and this can create some doubt. That said, if you are using the money for school related expenses (books, tuition, room/board, etc...This should be qualified use of funds, Unqualified would be a trip to Bermuda for a party and that will be taxed. Now, if you are concerned, you can call the IRS at tele 1-800-229-1040, early in the morning, and ask them a question about the 1098-T form and if you must submit it. You don't have to give them your name or any data. Just say that you are a new student and don't want more paperwork, so is it a requirement to submit it. The answer should be "no"....
Keep this in mind (quoted from NY CPA Association): "many colleges and universities prepare 1098-Ts incorrectly and report tuition and related expenses inconsistently". This means you should be careful to reconcile the 1098-T with your own financial records of what money you actually received and paid. When I was in grad school there was a good deal of hand-wringing and hair-pulling each year among the students as we tried to determine what relationship (if any) the 1098-T bore to the financial facts.
