How do I handle the amount reported in box 4 (Adjustments made for a prior year) of the 1098-T? I see where to enter it into ProSeries, but entering it does not seem to make any difference. Pub 970 wasn't much help, either.
Go back to the 2007 return Form 8863. Reduce the tuition by the amount of the refund. Enter the difference between the old credit and the revised credit (the recapture amount) on line E of the 2008 Tax Smart Worksheet. It will show up on line 44 of Form 1040 with "ERC" and the amount.
Page 16 & 17 of Pub 970 explains Recapture of Hope Credit. Page 25 explains Recapture of Lifetime learning Credit. Here's the link http://www.irs.gov/pub/irs-pdf...
