As I now understand it, the "program" paid the $7950 in box. But the $2700 difference from the $5250 allowable amount (7950-5250 =2700) will not show up on your W-2 as income. That is sometimes allowed. So, I assume your employer's program meets the IRS rules for the exception (the education essentially must be job related).
I also assume none of the extra grants and scholarships in box 5 went for the box 1 tuition. That means the amount in box 5 is taxable income to you, unless you can enter some additional QEE, such as books and a required computer. Professional clothing and student teaching supplies do not qualify as QEE. A computer does. "Course materials" required for classes you are taking, as a student, are QEE. Course materials for classes you are teaching, as a student-teacher, are not QEE.
The way it usually works is: you enter the 1098-T, as received. TurboTax (TT) treats the the difference between box 5 and box 1 as taxable income, unless you enter additional expenses. Answer yes when asked if you had book expenses to get to the expense entry screens.
But, in your situation, you'll have to use a workaround, in TurboTax. When you enter the 1098-T, you enter it with 0 in box 1. The alternates are to enter $7950 as employer assistance or as additional scholarship, not shown on the 1098-T.
