@trumpet365 Do you work for an employer that provides educational assistance for all employees or is this something they are doing just for you?
If it's a regular plan, it would be unusual for the first $5250 not to be tax free. You should verify the numbers before completing your tax return. That said, it probably won't matter much. The $3750 probable amount you are allowed to claim is very close to the $4000 maximum needed for the full AOTC.
$3750 qualified expenses = $2438 AOTC
$4000 qualified expenses = $2500 AOTC
Here's how I would do it: enter the 1098-T with $3750 (or $4000) in box 1 and box 5 blank. Enter no other numbers.
The 1098-T is only an informational document. The numbers on it are not required to be entered onto your tax return. You claim the tuition credit, or report scholarship income, based on your own financial records, not the 1098-T. The 1098-T that you enter in TT is not sent to the IRS.
