Education

The 1098-T should show $25,000 in box 1. You will have to ask the school to correct it, and you may need to get an extension on your tax return deadline.  If you report $25,000 in box 1 now, your taxes will be correct, but the IRS will start an inquiry when the form doesn't match your return.  Your accountant should be able to right an authoritative letter to the school.

The 1098-T instructions for box 1 specifically say "The amount reported is not reduced by scholarships and grants reported in box 5." https://www.irs.gov/pub/irs-pdf/i1098et_18.pdf

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