You didn't say what year you are asking about. Form 1098-T for 2018 or 2019 shouldn't show an amount billed. Box 2 should be completely blank. If box 2 says "Amounts billed" the college is using an old form.
But if you are asking about 2017 or earlier, the college had a choice of showing payments received in box 1 or amounts billed in box 2, or both. If they chose to show only the payments received, they should have left box 2 blank. Did they actually bill you for tuition in the year in question? If so, they should have shown the amount billed in box 2, or left it blank. If they did not bill you for tuition, then what year were the payments for? I think that's what the IRS is really questioning. You cannot claim a deduction or credit for tuition that you paid for an earlier year.
