The school is required to report what was paid in Box 1, they should not deduct any payments or scholarships.
According to the IRS:
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).
If the school reported the 1098-T incorrectly, use the "What if this is not what was paid to this school?" link under Box 1 on the 1098-T entry screen and enter the proper amount.
Check your school records to validate this corrected amount and keep a copy with your tax file.
If the 1098-T was also mis-reported in Tax Year 2022, and the correction will change your tax liability, file an amended 2022 return using the same procedure to make the correction to the 1098-T.
How to amend using TurboTax
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