Pension overpayment Repaid

We were overpaid just under 8,000 last year from a military pension (DFAS).

My wife repaid the overpayment and got a letter from DFAS saying it was paid back.

But they still gave us the 1099R showing the full amount received and taxable.

Their nice letter just says "you may be able to deduct the amount repaid as a miscellaneous deduction or use the amount to compute a credit against your tax liability"

Any help/ideas?

We're using TurboTax Deluxe.

Thanx in advance.