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?