Retirement tax questions

You should enter your Form 1098-T box 5 as it is reported.  So, if it includes both items, then leave it as is and report it that way.  You want your tax return to match the forms as they are reported to the IRS whenever possible.  

Now, if the box 5 does not include your veterans benefits, then you should add them separately in another TurboTax screen instead of manually adding them into your box 5 amount.  I have included the appropriate screen as an attached screenshot below.  This screen comes after you have entered your Form 1098-T.

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