Hello Kris!
Sorry for the delay but I was waiting the school response and it usually takes a lot of time.
Unfortunately this answer is no more than reference to IRS site.
But I investigated myself trying to recover the whole story. This is what I found:
Difference is still unexplainable. I am ready to pay tax for this amount without further investigation. But I recovered some more details.
Box 1 - this is the real amount spent on tuition including summer school.
Box 5 - all scholarships. But because of the covid-19 situation campus was closed earlier and students went home for remote sessions. And school returned prorated part of Room and Board scholarship as a cash - $2,209. And she paid this money for the summer school. This summer school figures are reflected in the Box1 and student's details on the next page of the 1098-T.
As far as they were spent on tuition they are not taxable, but the problem is I do not know how to report them because this situation does not match either scenario in your answer.
By the way, theoretically speaking, if I take this money out of the room and board, the difference I mentioned at the beginning of this topic is getting much more.
So I am very confused.
Thanks!
