It will be subtracted from your income on line 12 of your 1040.
If you would have itemize deductions regardless, then yes, it is the same as subtracting it out of Box 1 of your W-2.
If, however you would have taken the Standard Deduction, the deduction of the repayment might not be fully realized.
Example, you file Single, so your Standard Deduction is 14,600.
If you have 14,600 in itemized deductions before the repayment, yes, all the repayment is treated as if you are subtracting it from your wages.
If you only have 10,000 in itemized deductions, 4,600 of the repayment is lost because you could have taken the 14,600 standard deduction if you were not forced to itemize.
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