Can I change payments made in box 1 of form 1098-T to reflect the scholarships in box 5 which is $ 31,310? How can I avoid taxable income from this error?

[cmelly]

The 1098-T shows payments received $9,359 and scholarships  $ 31,310 all received in 2018. How can I adjust the tuition to include the scholarship so it does not appear to have taxable income. The parents qualify for AOTC also the payments received is incorrect.

[TaxGuyBill · Accepted solution]

If the Box 1 is incorrect, the first thing that should be done is to contact the college to correct the 1098-T.

Assuming the college is stupid enough to refuse to correct it, there is a "reconciliation" box a bit lower on the screen that you can enter the actual amount of tuition paid.