How to enter employer tuition reimbursement over $5250?

I paid $8601.75 paid in tuition and my employer reimbursed me for all of it. $8601.75 is listed in box 1 on my 1098-T. I know $5250 was nontaxable, and the remaining 5545.75 was included as income in box 1 of my W-2. How do I enter this in TurboTax?

1. I entered the info from my 1098-T (with 8601.75 in box 1). I'm still supposed to enter this full value, correct?

2. I went to "Scholarships/Grants (for all schools)" > "Let us know if you got a scholarship, grant or any of these other types of aid" > I said YES for this. 

3. It says "Enter the amount you received. Don't include amounts already listed on a W-2 or other tax form." I'm not clear on whether the $5545.75 was technically "listed" on the W2 since it was lumped in with the rest of my income. In the "Employer-Provided Assistance" box, is this where I put $5250? Or is is $5545.76? 

I'm assuming it's supposed to be $5250 because the federal refund is a greater amount when I enter this (compared to $5545.76).

Thank you in advance for your help.