That is correct. If box 1 does not reflect the actual amount of tuition expenses being paid or received, you will select the "What if" option to enter the corrected amount. In your situation, you will only pay the taxes on the portion of the scholarship that is NOT used to pay for the qualified education expenses, for example, like food or room & board. The program should calculate the taxable amount as the difference between $63,445 and $59,944.
