Q. So when I report my 1098T, I cannot say that the amount over $5250 was “not scholarship or aid”?
A. No. Just the opposite. You can say that the amount over $5250 was “not scholarship or aid”.
Q. I want to claim the LLC if I can. The confusing part is if that money is eligible or not?
A. Yes, you can claim the LLC. The money (over $5250) is eligible. That part is not confusing to me. You can claim that money.
The rest of what your employer is doing is a little confusing to me, but it does no affect your tax filing for the LLC. So, $12,000 - 5250 = 6750. You LLC should be 6750 x 20% = $1350
