I’m curious how you handled this situation. My daughter also received a 1098T and the value of the free room and board, which is provided in exchange for RA duties, was included in box 5 with her other scholarships. It makes it look as if her qualified tuition expenses were less than her scholarships. In 2016 I deducted the room and board from this scholarship amount. Just today I received a tax bill from NY stating that I entered an incorrect amount for box 5, and she wasn’t eligible now for the tax credit for her tuition expenses. I haven’t found a definitive answer anywhere on how to handle the value of the room and board in regards to resident assistants. I believe it is a condition of employment and should not be reported as a scholarship. But now I’m being audited over this! Ugh!
