You do need to be sure you understand what transpired. Perhaps speaking with the administration at Full Sail would help.
If the tuition was 5,625 and you got a scholarship for 3,375 that means they kept 2,250 of your prepaid college distribution.
You took a 10,903.81 distribution, Full Sail kept 2,250, so you need to claim 8,653.81, but the tax on that distribution is based on what was earnings, not the full distribution. It is also possible to use some of the fees towards a credit and then pay the tax on more of the distribution if it results in a higher refund or lower tax liability.
If you received 582.47 (732.47 - 150.00) from the GI Bill, that would need to be accounted for, although it would not be taxed. You would need to find out from the VA if these funds were restricted to tuition use only, or if you were allowed to use it for other living expenses.
You can still use TurboTax for your return, but you do need to be clear about who paid what. Even if you go to a Brick & Mortar accounting office, they will need to know the answers to these question.
IRS Pub has a lot of good examples about how you can report tuition, tax-free assistance and distributions to get the best results. Click the link below and read chapter 7.
CLICK HERE for IRS Pub 970 Education Credits
