Yes, TurboTax is subtracting that amount and that is how it is supposed to be done. But, when you have box 2 reporting, sometimes you need to make adjustments to that number as your case shows.
You can enter your total tuition and fees expenses instead of using the box 2 reported number using the following steps
- Log into your account and click Take Me to My Return (you must click this before performing the search below)
- Click the search icon (magnifying glass in top right-hand corner)
- Search for "1098T" and click the "jump to 1098T" link that appears
- This will bring you to the Education Expenses section where you can add a student and related Form 1098-T information
- There will be a blue link underneath box 2 that details what if this is not the correct amount - click that link and a new box will open for you to input the correct amount of total tuition paid, include the amount paid by scholarship since the program will subtract the box 5 amount (see screenshot)
- Be sure to also include the other information from your Form 1098 such as scholarships and grants
- You can then proceed with the rest of the interview
