1. Your first W2 should already be deduct by $5000 if it
was worked out properly. Then you need to do nothing.
2. If not, you deduct your income from your W2 by $5000
by yourself and put that amount into your 1040 form as
taxable income. I forgot which line it is, I remember it
seems line 7. And you must attach form 8833, I am not
quite sure the form # either, you may check Pub 519 from
IRS web site.