ajschref
Returning Member

Is the amount of scholarships/grants shown in box 5 of form 1098-t subtracted from the amount of tuition paid shown in box 2?

Turbo tax and/or my 1098-t seem to be subtracting scholarship amount in box 5 from the tuition/related expenses amount in box 2 when actually the tuition/expenses amount shown is the amount I actually paid AFTER the scholarship was applied to my daughter's tuition.  This is making a huge difference in my taxes because it is then treating some of my distribution from our 529 college savings account as not qualified and taxing and penalizing it because it appears that I didn't pay as much tuition as the 529 withdrawal.  The 529 distribution amount is actually mush less than the tuition I paid.  How do I fix this?