1098T - Should box 1 include amounts paid by scholarships? The scholarships exceeded the amount on box 1 Pro series is deducting the scholarships from box 1

I suspect a lot of 1098-T forms are going to be screwed up this year (even more than usual).  See instructions:

https://www.irs.gov/pub/irs-pdf/i1098et.pdf

Bottom of page 3 (emphasis mine):

Box 1. Payments Received for Qualified Tuition and Related Expenses

Enter the total amount of payments received for qualified tuition and related expenses from all sources during the calendar year. The amount reported is the total amount of payments received less any reimbursements or refunds made during the calendar year that relate to the payments received for qualified tuition and related expenses during the same calendar year. The amount reported is not reduced by scholarships and grants reported in box 5. Include in this box the receipt of a payment of past-due qualified tuition or related expenses from a previous calendar year, but only if the educational institution previously billed the student for such amount(s).

Your detailed information is accurate.  However, ProSeries is deducting box 2 from box 1 as has been the case in past years.  Another SNAFU on the part of PS.

In my case 2019 1098t has box 1 is blank because the university billed in December 2018 but got payment if January 2019. If you use the box 5 minus box 1 the entire scholarship is taxable. When I went into forms mode there was a section for box 1 adjustments where I entered the payment received amount which took care of the tax issue. It seems if the billing was done in 2018 (December) it does not generate information for Box 1 and was told that this was an IRS change to the schools (revenue recognition, etc). I have not confirmed if is this is the correct way so reaching out for verification. My documentation is from the  actual invoice.