Ok, so on my son's 1098-T
Box 1: 10,500 (qualified expenses)
Box 5: 13,000 (scholarships)
None of the money from box 5 was refunded. The overage (since the scholarship received can be applied to anything per the scholarship rules) was simply applied to his on campus dorm bill. Basically, son received a 6500/semester scholarship that can be used for anything, tuition and fees/semester 5250, dorm housing 5500/semester, so the excess scholarship helped pay dorm expense. Does any of this have to be declared on 1040 (excess income, since he will not apply for hope credit or AOC). He has other income so he will be filing a 1040. Thank you.
