You say "My employee". I assume you mean your EMPLOYER. I also assume your employer is the college that your daughter attends. Tuition remission/reduction or discount is usually tax free and does not need to be reported at all. Reference: page 8 of IRS Publication 970. But, it may depend on how the college/employer reports it to you . Usually, the college simply reports $4000 (instead of $8000) in box 1 of the 1098-T. Some will report $8000 in box 1 and $4000 in box 5 (treating the remission as a scholarship). Either way, it's tax free and you just enter the 1098-T as received.
If it's reported on your W-2, it depends on where on the W-2 it is. It's only taxable, if it's included in box 1 of the W-2.
You say "My employee". I assume you mean your EMPLOYER. I also assume your employer is the college that your daughter attends. Tuition remission/reduction or discount is usually tax free and does not need to be reported at all. Reference: page 8 of IRS Publication 970. But, it may depend on how the college/employer reports it to you . Usually, the college simply reports $4000 (instead of $8000) in box 1 of the 1098-T. Some will report $8000 in box 1 and $4000 in box 5 (treating the remission as a scholarship). Either way, it's tax free and you just enter the 1098-T as received.
If it's reported on your W-2, it depends on where on the W-2 it is. It's only taxable, if it's included in box 1 of the W-2.