No difference: this seems to be the same situation. So, to do it using the example in Pub 970, how would I enter it in order to report the $24K as expenses? Do I enter it as "Other Wages Not on a W-2", and not report the 1098? I had her send me a copy of her student account to see if I could reconcile the amounts billed for qualified expenses and amounts received for scholarships and grants to the 1098T. I honestly have no idea what accounting method the school uses, but the bill and credit dates for the pertaining year, do not reconcile with the 1098T. Tax Guy's suggestion to make the adjustment to the tuition amount and including an explanation reduces the liability to half the amount originally owed.