Why does form 1098-T substantially decrease my tax refund?

The other ~$1000 was my part of the student fees, which I paid out of pocket.

I read that the 1098-T does not need to be reported on multiple college FAQ sheets like this one:

https://www.cod.edu/costs/tuition/1098_faq.aspx

Am I required to submit my 1098-T to the IRS? No. Form 1098-T is for informational purposes only and does not need to be submitted to the IRS by the student.

Note: This isn't my college but rather another state college. My college has an FAQ with similar wording.

I also saw it in several online forums, such as this one:

https://www.google.com/amp/s/ttlc.intuit.com/community/taxes/discussion/are-you-required-to-file-your-1098-t-form/00/768500/amp

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