The W-2 does not appear to be correct. Payments made under the LRP are considered taxable income in the year(s) that payments are made, even if less than $5250. There should be an amount on boxes 1 and 16. It is correct that a separate W-2 is issued for the payments.
References: https://myarmybenefits.us.army.mil/Benefit-Library/Federal-Benefits/College-Loan-Repayment-Program-(...
https://www.forgetstudentloandebt.com/student-loan-relief-programs/federal-student-loan-relief/feder...
