I'm hearing that the school put the entire amount of the employer reimbursement (about $12,000) in box 5 of the 1098-T, because that's what they received. That's wrong, because only $5250 was tax free assistance. Now you have to make an adjustment. The simple thing to do is just enter $5250 in box 5 when you enter it in TT. Keep good records in the unlikely case that you get audited.
