Q. The difference of box 1 and box 5 in my 1098t is the health insurance subsidy offered by the university. Can that be reported under tax free employer provided assistance?
A. No.
If it really was tax free employer provided assistance, the university would have reported it differently. Furthermore, since health insurance is not a qualified educational expense (QEE), it is taxable. TurboTax will automatically treat the difference between box 5 and box 1 as taxable income, unless you enter additional QEE (books, other course materials and a required computer).