Look at Schedule 3 to Form 1040. Is there an amount on Line 3? If so, this is the amount of Education Credit. If not, check Line 8z of Schedule 1. Is there an amount on this line? What is on this line, does this have the $5,000. If so, then you are being taxed on the $5,000.
One thing you could try is to delete the entries for the 529 and the 1098-T and then re-enter the information to see if it clears this up?
Since I cannot see the forms, I cannot give you much more than checking these areas to see if they can give you any explanation.
