Box 1 includes all of the education expenses paid for the year. So, it could have been parents, scholarships, anything, anyone.
Box 1 is what the school claims was paid to them for education expenses. They don't care how they got paid in box 1. In box 5, they put the scholarships that they know about.
You want to report the 1098T as it looks. The program will ask if you paid the college more, other expenses and so on. See Where do I enter Form 1098-T? There is lots of great information in Education.
@connexcindy2016
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