Form 1098-T has a 10 digit zip code, but the system will only take 9 digits. When I input the 1st 5 digits only, it's not accepted. How can I move on?

There are no 10 digit zipcodes. Delete the hyphen.

is the state correct? For example. Arizona should be AZ (not AR).

Correct the zip code. 

The 1098-T does not have to be entered exactly as received. You can make corrections without flagging the IRS