The amount reported in Box 1 includes all payments made toward Qualified Tuition and Related Expenses (QTRE) during the tax year (January 1-December 31).
Qualified Tuition and Related Expenses include tuition, fees, and course materials required for a student to be enrolled at or attend an eligible educational institution.
Examples of these include but are not limited to:
Tuition
Student services fee
Lifetime transcript fee
Course or program fees (i.e., College Class Fee)
Examples of charges that are not considered qualified tuition and related expenses include but are not limited to:
Room and board fees
Insurance and medical fees
Transportation fees (i.e., UPass, parking, etc.)
Late and penalty fees (i.e., library fines, etc.)
Other fees (pre-orientation fee, payment plan enrollment fee)
The amount reported in Box 5 includes the total amount of scholarships and grants disbursed to the student account during the tax year.
This generally includes funds from third parties such as federal, state, and institutional funds, as well as government organizations.
For detailed information, please refer to IRS Publication 970.