1098-T Box 1 is payments received by the school. It doesn’t get reported on your tax return or the student’s tax return. Scholarships and grants received by the student are reported on the student’s tax return, but only if they are taxable. Scholarships and grants used for tuition, certain fees, and course-related expenses (books, equipment, etc.) are generally not taxable and are therefore not reported on the student’s tax return.