1098 T

[helow]

TP paid tuition fees in DEC 31 2007 in the amount of $695. As a result she saved $434 in taxes in 2007. She dropped some of the classes and now she received $261.30 in Box 4. My question is does she need to file 1040x for 2007 or need recapture the saving and enter it in line 21.

Thanks

Helow