Q. Does it count as my employer-provided assistance?
A. Yes.
Q. Would I record the refund as part of my employer-provided assistance?
A. Probably not.
If your parents are claiming you as a dependent, they will be the ones claiming a tuition credit, if one is allowed. They may need to "record" the refund. They will need to adjust the amount of qualified expenses they use to calculate the credit by the amount of your tax free assistance. The TurboTax interview handles this.
By law your employer can only give you $5250 maximum, tax free. If your tuition was less than that, and you employer reimbursed it all; it’s safe to assume it does not need to be reported. Your parents do not even need to enter your 1098-T, as they have nothing to claim (unless there are additional expenses for books and a computer).
If you got more than $5250, the amount above $5250 is usually already included in box 1 of your w-2 and you do not need to enter anything additional on your tax return. Since you have essentially paid tax on that part, it is considered your after tax money and that amount can be used to claim the tuition credit. It should be claimed on your parent's return, not yours, since you are their dependent.
