You can appy the credit reduction in TurboTax, but you need to use the desktop version of the program. If you use that program, you will see a worksheet on Schedule H, above line 23, where you can enter information and amounts to have the credit reduction calculated and entered on your tax return.
You can transfer your TurboTax program to the desktop version by saving your return to your computer. You will see an option for this by using the Tax Tools menu option and then Tools while working in the online version of TurboTax. Here is a link to where you can purchase and download the desktop version of TurboTax: TurboTax Download Programs
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