Q. Do I need to report my tuition reduction as "employer-provided assistance." ?
A. No. As you said, the university simply reduces the charges themselves, so there is no payment coming from the university to credit the charges or reimburse you.
Q. I am guessing that I can select "no" since the 1098-T will be reduced already?
A. That is correct.
For an explanation, see page 8 of Pub 970
https://www.irs.gov/pub/irs-pdf/p970.pdf
