How do I enter repayments to the VA for GI bill overpayment in turbotax?

Last fall I had to withdraw from courses funded by the Ch 33 GI bill.  My 1098 T still shows the full amount the VA paid to the school, but the VA sent me a bill for most of the money they paid to me and the school.  My 1098 T shows approx $4,000 in expenses, $10,000 paid (between GI bill and Pell grants), but the VA recouped $8,000 from me.  Shouldn't I be able to deduct the net $2,000 I paid?  How do I do this?

Tax help for military filers

To get to the correct location to enter your actual tuition paid, follow the steps below:

  • Choose Federal on the left
  • Then click on Deductions & Credits at the top
  • Scroll down to see All Tax Breaks
  • Choose Education and Show More
  • Start or Revisit Expenses and Scholarships
  • Continue through the interview to your 1098-T.  Underneath the Box 2 amount is a blue link that says "What if this is not what I paid my school?"  Click on the link and it will expand and allow you to enter the actual amount you paid.