Box 5 is blank. The figure in Box 1 is net of the scholarship amount.
This is not that complicated. The amount billed and paid is the figure in 1098-T box 1. The amount distributed and reported on the 1099-Q is the sum of the the amount billed and paid plus the amount of the scholarship applied for the year. The earnings on the latter amount should be taxed but no penalty should apply. How can I indicate this without overriding TT, because if I do, TT won’t let me e-file.
