We received a 1098 from a university that had different amounts in box 1 and box 2. When using Turbotax this gives us an error saying that boxes 1 and 2 should match.

[kerriP · Accepted solution]

There are two solutions to this.  I would choose #2. .

1. The Institutions are suppose to only complete box 1 or box 2  but not both.  Contact the school and get a corrected 1098-T.
2. Keep in mind you use the amounts actually paid to the school to compute the credit.  So, by looking at your records, I would complete Turbo Tax using whichever 1098-T box best matches your records, and leave the other box blank. This will eliminate the error.  

If you have education expenses paid in 2017 for the first quarter of 2018 academic period, you need to claim those in 2017.  (per IRS Pub 970 page 13)  

Note: (In 2018, the 1098-T is only going to have box 1 payments received during the calendar year)  

For more information see Pub 970 Education