"I never saw this before and I am asking if this is a proper way to reduce the income since we can't write it off on Sch A anymore"

You mean, Form 2106? Not Sched A. The State might accept Form 2106, though.

"I never saw this before and I am asking if this is a proper way to reduce the income since we can't write it off on Sch A anymore"

Was it reported as taxable or nontaxable, in Box 14?