When school reports information in Box 4 of the Form 1098-T, it usually pertains to the situation when you receive a refund due to dropping a course or receiving a scholarship. You would need to recapture the education credit or tuition you claimed in the prior year and report an adjustment on your 2017 taxes.
To enter the adjustment in the TurboTax online program, please follow these steps:
In TurboTax Free online edition,
· After sign into your account, select Take me to my return
· At the right upper corner, in the search box, type in education recapture, then Enter
· Select Jump to education recapture
· Next screen, Any Education Deductions or Credits in 2016? select your answer
· Follow prompts to answer on-screen step by step questions and instructions to complete