Thanks for the detailed reply Hal_AI (and i really am curious if you are an AI or a biologic).
I will explore the interview options per your suggestion.
The lack in the 970 of any reference to "Box 7" makes it difficult to know which verbiage is relevant. I would have thought that a 79-page publication referenced directly in an IRS form about a topic relevant to a large population (anyone receiving a 1098-T) would have somewhere in it a reference to "Box 7". That's a criticism about the Pub, not you.
Couple of questions based on your answers:
1. Given that educational institution also sends the 1098-T to the IRS, doesnt the IRS system notice if different numbers are used in preparing the return?
2. If I correctly understand, If box5 amount is greater than box1 amount, the difference might potentially be taxable. This makes me wonder: Financial aid is based on unmet need (cost of attendance - EFC). If a student's EFC is less than the university's cost of housing for example, and his/her university meets all the need via scholarships and grants and reports that total in box 5, is the amount that exceeds the qualified expenses (the portion that paid for part of the housing) supposed to be treated as potentially taxable income for the student? If so, does a full-ride scholarship (merit-based or efc=0) create a potentially large taxable income situation for a student attending a university where room&board costs are high?
Thanks in advance!
