The purpose is when a taxpayer pays but the payment is not listed on the 1098-T, this might happen when a payment or scholarship posts in December for classes that start in January and the school does not process the payment in time to include it on Form 1098-T. Box 1 would need to be adjusted up.
It could also be the other way around, Box 1 could list a payment that was made the previous year and needs to be adjusted down.
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