Hi KrisD15,
I really appreciate this answer. However, I am wondering if you can clarify something. When I read on the IRS website how the college's should fill out the 1098-T, I do not see where it says line 1 would include the universities scholarship. It does say that this line is not reduced by line 5, but doesn't say it should INCLUDE it. Am I just misinterpreting this? I have been trying to get a clarification from the college as to how they calculated this, and I just want to understand what Line 1 should have. Below is how the IRS describes this line:
Box 1. Payments Received for Qualified Tuition and Related Expenses
Enter the total amount of payments received for qualified tuition and related expenses from all sources during the calendar year. The amount reported is the total amount of payments received less any reimbursements or refunds made during the calendar year that relate to the payments received for qualified tuition and related expenses during the same calendar year. The amount reported is not reduced by scholarships and grants reported in box 5. Include in this box the receipt of a payment of past-due qualified tuition or related expenses from a previous calendar year, but only if the educational institution previously billed the student for such amount(s).
