It's a little complicated. There's pre tax reimbursement and after tax reimbursement.
By law your employer can only give you $5250 maximum, tax free. If your tuition was less than that, and you employer reimbursed it all; it’s safe to assume you can not claim a tuition credit. You do not even need to enter your 1098-T. You have nothing to claim.
If you got more than $5250, the amount above $5250 is usually already included in box 1 of your w-2 and you do not need to enter anything additional on your tax return. Since you have essentially paid tax on that part, it is considered your after tax money and that amount can be used to claim the tuition credit.
You say "this reimbursement is tied to my W2 income and has been federally taxed". That's unlikely based on the $5250 rule. You should verify that with your employer.
Bottom line: if you pay tax on the reimbursement, it's considered your money (not reimbursement) and you can claim the tax credit. If a portion is tax free reimbursement, you cannot claim the credit on that portion.
