Client took two early distributions of $12700 (Code 1) and $194 (Code 1B) from a 403b to pay for son's tuition 2019-20 school year. They are paying $1580/mo (10 month payment arrangement) starting in 8/2019. The 1098T from the University they shows $26978 in Box 1, and $14750 in box 5. 

1) What amount should be shown for education credit - actual amount they paid toward tuition (5x 1580= 7900) or the full amount of $15800 or Box 1 - Box 5 (26978-14750=12228?

2) Since the distribution from 503b was for tuition (federal and state taxes were withheld), is the distribution fully taxable as shown in box 2a?

Thanks in advance--this is my first time encountering this discrepancy.