Does a "Tuition Exchange" Program Count as "Employer-Provided Assistance"?

[JulianKS]

I work for a college where one of my benefits is the ability for my wife and I to take classes at my college of employment -- and at other local colleges that are part of the same agreement -- for free.

The benefit comes in the form of a tuition waiver for up to 2 classes per semester. We do not receive any money for this benefit because we don't have to pay the tuition, the fee is just completely waived rather than reimbursed.

We utilized the benefit this year, but I'm not sure whether I have to report it as "Employer-Provided Assistance" or not. 

If this benefit does not count, my wife would meet the requirements for the Lifetime Learning Credit, as she also took classes in the summer that she took normal loans out for. The question came up when entering her 1098-T.

Thank you!

[MinhT1 · Accepted solution]

The tuition waiver that you (and your wife) received is tax-free and is not reported on your tax return, even if you received form 1098-T. However, you cannot use the amount of tuition waived to claim education credits. You can only use out-of-pocket education expenses to claim education credits.