1.) The W-2 instructions show what to do under "Repayments".
<a rel="nofollow" target="_blank" href="
https://www.irs.gov/pub/irs-pdf/iw2w3.pdf#page=11">https://www.irs.gov/pub/irs-pdf/iw2w3.pdf#page=11...>
2.) That is what the directions are, so that is what should be done.
