The difference between box 6 and box 1 on Form 1098-T is being included on Turbotax as taxable income. I did a one-year degree during the 2019–2020 academic year. Of roughly $26,000 total tuition, about $22,000 of the $26,000 total tuition was accounted for in box 1 on the 2019 1098-T, and only $4,000 of that $26,000 was on the 2020 1098-T. But the scholarship was evenly divided, about $6,000 in box 5 of both 2019 and 2020 1098-T. So it ends up looking like I made about $2,000 in income for 2020 and like I paid about $16,000 for 2019. But really I paid about $7,000 for 2019 and $7,000 for 2020. Am I basically paying this year for benefits I didn't deserve last year? Or do my forms need to be corrected? I was not expecting to pay taxes on my scholarship since the scholarship only covered about half of tuition.
