We're trying to figure out our Qualified Education Expenses on the 8917 (to compare with the 8863 eventually and see which is best). We receive a spouse Qualified Tuition Reduction and were taxed on it. So we paid a minimal amount per credit hour, some random fees (that I think aren't qualified education expenses), and taxes on the QTR that were taken out of various paychecks. Everything I read tells me about non-taxable reimbursements, but I'm not clear on the taxed ones.
1. Does the tax we paid on this money throughout the year qualify as an education expense on the 8917?

2. Our 1098 has information in box 2 (not 1) and in 4 and 5. What do we do with this information?

Thanks!!!!