Q. If I do the other workaround and enter the manual calculation for the taxable portion, do I still claim the 4K on my return?
A. Yes
Q. "It troubling because I don't see that phrase anywhere in the forms etc."
A. It's not on any IRS forms. It's line 17 of the TT student information worksheet. You may be able to change it there (I know you can with the download software)
