Client received 1098T. Box 1 is $1,851 and Box 5 is $585.  The twist here is the tuition is paid by employer and the only time client has to pay is when the client fails to receive a passing grade.  So the amount in Box 5 is really the amount client paid to institution.  If I report the amount on 1098T as stated, client receives  $1,266 tuition and fees reduction from income.  Any help will be appreciated.  Thank you