My husbands scholarship covers all of his tuition but
nothing else. However our 1098T reflects that Box 5 (the scholarship amount) is
more than Box 1 (tuition and fees for the year). When I review online I get
conflicting information. Everything states that if box 5 is greater than box
one its taxable. However, it all went to tuition and fees (not transportation
or rent) we never saw any of the money personally. If you look at my husbands school
account it shows that the money was paid directly to the institution for
tuition and fees. Do I have to report this "extra" income from box 5,
even though it was used for eligible expenses? I believe box 1 and box 5 don't match because of the billing calendar for the university verse the tax year Jan-Dec. Does anyone have any advise?
