Previous year DTF-960-E Adjustment amount to current year

I filed my 2021 taxes through Turbotax and claimed Education related deduction for Graduate degree. Later in Jan 2024  i received a Statement of Proposed Audit change  adjustment notice DTC-960-E where Dept of NY taxation explained that credit is not applicable for Gradate level education and i was asked  to pay back original amount assessed $903 and interest payment of $268 that .  sums to $1171. 

ISSUE: 

1) Can i take the any deduction of this payment in 2024 filing ?

2) If yes, where should i mention this amount ( $908 or $268) while filing NY state taxes? Should it go enter this amount  in Other New York adjustments to federal income/Deduction for repayment of amounts previously reported in income ? 

ow for 2024 tax filing ,  I need to know , can i deduct this amount from my NY state income  OR i should use as Credit or