AmeriCorps Segal Education - 1099 MISC Form & 1098-T Question

[wkldreams]

I have a AmeriCorps Segal Education Award that I have been using each year to pay off my student loans, allowing me to previously receive 1098-E forms. Last year was the first time I used it to pay for tuition for an online program at a university.

The total amount I paid for the courses was $2,184. I paid a total of $1,284 using my Segal Education Award towards the program and the remaining $900 out of pocket. I received both a 1099-MISC for the $1,284 AmeriCorps Segal Award money that I used and a 1098-T for $900 of qualified expenses (the school only counted the money I paid out of pocket). The Segal Award money wasn't included in grants/scholarships on my 1098-T, but the tuition I paid using it was deducted from "qualified expenses".

My question is technically the $1,284 on my 1099-MISC was also used towards qualified education expenses (tuition). Why wasn't the total qualified expenses on my 1098-T $2,184 for box 1? Is there a way to indicate it or how would be the best way to report both forms and maximize credits?

[AmyC]

Yes, let me show you what to do and how to go through the program. 

1. Understand the 1098-T is an information form, not a legal form. You can enter the correct numbers for you in the program and with the right answers, it will come out showing the portion you paid out of pocket along with income already showing on the 1099 MISC. 
2. Enter Box 1 $2184 and box 5 $1284 for your entries. This gives the IRS the same total tuition paid by you.
3. After the 1098-T is entered, answer questions regarding books, etc.
4. When asked if any financial aid was already included in income, select yes
5. Enter the amount
6. Continue answering questions

Here is where I entered $2,000 on box 5 of the 1098-T so the program asked about the money.