Confused about Employer Tuition Assistance

[Dale_Lang]

I took one class in 2022. I received a 1098-T showing how much the tuition was (Box 1). This tuition was covered by my employer, and it was considered to be a scholarship/grant (Box 5). This makes sense with the billing and the employee assistance program (yes, I work for a university, and this is part of their employee assistance program to help employees to take classes; I guess their program for this type of thing is considered to be a scholarship/grant). 

After I imported my 1098-T, it asks a question about employee tuition assistance. Is this part for assistance that has NOT been reported on my 1098-T? It says to enter amount not already listed on a 1098-T, but I just wanted to make sure. Since the tuition was covered by my employer's program and has been reported in box 5 of 1098-T, I should just put $0 in the corresponding box, right?

[Hal_Al]

Q.  Is this part for assistance that has NOT been reported on my 1098-T?

A. Yes. 

Q.  I should just put $0 in the corresponding box, right?

A.  Yes. Or better yet, answer no when asked if you got employer assistance (your employer is already treating it as scholarship). 

The 1098-T is only an informational document. The numbers on it are not required to be entered onto your tax return.   However receipt of a 1098-T frequently means you are either eligible for a tuition credit or possibly your student has taxable scholarship income. If box 5 equals or exceeds box 1, and you have no other qualified expenses (e.g. books), you don't need to even enter anything in the education section.

If you claim the tuition credit, you do need to report that you got one or that you qualify for an exception (the TurboTax interview will handle this)

You claim the tuition credit, or report scholarship income, based on your own financial records, not the 1098-T. 

[Dale_Lang]

Thanks for the reply. This is all so confusing doing this for myself.

Actually, upon looking at my paystubs, for one month, the exact amount shown on my 1098-T shows up on my pay stub for that month when tuition was due. However, it is classified as a "employee waiver non tax". No more info is said about it. Also, this employee waiver item is NOT part of my gross pay for the month.

You said that 1098-T is an info document, so credits are based on my own records. In this case, since I see the supposed credit on my pay stub, what do I do? Can I claim a credit? 

[Hal_Al]

Q.  In this case, since I see the supposed credit on my pay stub, what do I do? Can I claim a credit? 

A.  It shows up on your pay stub as a not taxed employee benefit.  What your own records show is that your tuition was effectively paid with tax free money ("this employee waiver item is NOT part of my gross pay for the month"). You don't get a 2nd tax break via a  tuition credit.