Air Force Tuition Assistance/Reimbursement

[lmuniz1]

Hello,

I received $3,000 from the Air Force through the Air Force Tuition Assistance program to help cover my $3,430 total tuition. However, I failed 2 courses and had to pay back $1,500 of those $3,000 to the Air Force.

1. Do I claim the $3,000 in box 5 of my 1098-T  while filing out my education tab online, or do I put $1,500 as I paid back half of the total amount? Likewise, would I fill the $3,000 in box 5, but put $1,500 in "expenses not required by the school"?

2. In a similar post to mine, another member explained that the Active Duty Service Member did not have to claim the $3,000 provided by the Air Force as it was tax free.

What is the correct order of steps in this situation?

[MarilynG1]

You don't need to enter your 1098-T in TurboTax, just keep it for your records.  

As you had no 'out of pocket' costs, you wouldn't be eligible for an Education Credit.

Click the link for more detailed info on 1098-T.