Post-9/11 GI BIll 1098-T

We received a 1098-T with Box 1 empty, Box 2 has the amount billed to the school, and Boxes 7 and 8 checked. The VA paid the school directly for tuition under the Post-9/11 GI Bill. However due to when the VA pays its education benefits out for stipends the book stipend did not arrive until after we had to purchase my husband's books for the semester. So we had to pay for the books out of pocket. Should  we complete the education section related to the 1098-T? Can we claim the book costs as an education-related expense since the money was not received until after the books had to be purchased for use in class?
    You may have initially paid for the books out of pocket but you were later reimbursed with VA money.  This means that the books were actually paid for by the VA and, as such, cannot be claimed.  Within TurboTax, you would still enter the cost of the books in the "Books and Course-related Materials" field as part of the total qualified education expenses paid, but you would also enter the VA benefit received on the next screen as part of all financial aid received.  The difference is qualified education expenses paid out of pocket and with loans which are available for the education credits.
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