Q. Do we deduct Veterans Affairs payment from the 1098T?
A. Yes. Tuition covered by VA benefits is not "deductible" . That is you may not claim the tuition credit if you received VA benefits for the tuition, whether paid to you or to the school (whether included in box 5 of the 1098-T or not).
Q. The VA payment was paid directly to my daughter in 2022, but the remaining 2022 tuition balance was not paid until January 2023. How does this work?
A. The mismatched payment does not changes anything. You still can't claim the credit.
