Q. 1098-T Box 1 - before or after grant?
A. Before.
Q. Form 1098-T sent by the college has only $47K in box 1, which appears as this is (tuition + R&B - grant) ?
A. No. Box 1 is tuition and fees only, before grants. No room & board in box 1.
Q. So I wonder if the college is correct by reducing Box 1 by the grant amount.
A. It would not be correct to reduce box 1 by the grant. But, it's unlikely the school did that. More likely, you're not understanding it. One possibility is that the $67 included spring 2024 term. That said, it would not be the first time, in this forum, we've seen a school do it wrong.
$47K - 29K = $18K. There's plenty of expenses for you to claim the tuition credit and the scholarship to remain tax free.
The 1098-T is only an informational document. The numbers on it are not required to be entered onto your tax return. However receipt of a 1098-T frequently means you are either eligible for a tuition credit or possibly your student has taxable scholarship income.
If you claim the tuition credit, you do need to report that you got one or that you qualify for an exception (the TurboTax interview will handle this)
You claim the tuition credit, or report scholarship income, based on your own financial records, not the 1098-T. In the 1098-T screen, click on the link "What if this is not what I paid the school" underneath box 1. You will then be able to enter the actual amounts paid. You will also reach a screen that allows you to adjust the scholarship amount for "amounts not awarded for 2023 expenses".
Or if you find it easier, just change the numbers in boxes 1& 5 to what your records show. The 1098-T that you enter in TT is not sent to the IRS.
