I hold permanent residency since 2023 and completed my undergrad education in 2011 outside the US. In January 2025, I started my graduate education in the US and I've recently received my 1098-T from the university for the year of 2025, only box 1 was entered as $15,813.20, box 5 is empty. 

I was full time employed in 2025, as per the pay statements provided by my employer, amounts of $5,992.12 and $4,535.20 are listed as "Education Reimbursement" (total $10,527.32). I assume that $5,250 IRS limit is not listed in my pay statements, so in total I've received nearly the full tuition amount from my employer, but $10,527.32 listed in the pay statements which were subject to taxation.

One more thing to add, I was the one who paid the tuition out of pocket directly to the university, then requested reimbursements as expenses from my employer. My employer decided to "gross up" my reimbursement payments so that the additional tax burden caused by education reimbursement is somehow covered and there was no dediction from my usual pay. All gross-up amounts are listed in my pay statements and part of W-2. Not quite sure if this "gross-up" procedure may change anything.

While I was adding the form 1098-T to TurboTax, I was a bit puzzled about what to enter for "Employer assistance" part. I first added the whole amount ($5,250 IRS limit + $10,527.32 education reimbursement listed in my pay statements = $15,777.32), then system showed $36 American Opportunity Credit (AOTC). 

After that, I've searched on Internet and found out some instructions guiding me to put $5,250 in Employer assistance since this was the amount which was not subject to taxation.

Question 1: Am I really eligible for AOTC considering my situation? We are joint filers and our AGI is below the allowable limit for AOTC.

Question 2: What should I put in "Employer assistance" section in TurboTax considering above?

Thank you so much for your guidance.