I agree, do not submit a written explanation.
I also agree with @Bsch4477 , you can just not enter the 1098-T or adjust it as needed.* The IRS does not generally try to match 1098-T box amounts to your tax return.
Q. Has anyone dealt with a similar situation?
A. No. I have not seen that issue in this forum.
That said, the school may have done it right. Not all employer provided health insurance is tax free. It depends on whether their health plan meets the IRS rules for tax free health. Furthermore, it is not unusual for compensation for student-employees to be treated as scholarship.
* Longer explanation: 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 2024 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.
