My client attended college courses paid for by their employer. The agreement is that the employee will have to repay the fees if they do not complete a contracted period with the employer.  Client received 2024 1098-T with tuition in box 1 and the amount paid by the employer as a scholarship in box 5. 

The client will be leaving the employer in 2025 and will have to re-pay the scholarship.  How should this be reported in the 2025 tax year?  

Thanks in advance.