Q. Is this something that I should be receiving a 1098-T and should I be entering this on my tax return?
A. Simple answer: yes. If the employer education benefit is included as taxable income, to you, then it is, essentially, you that has paid the tuition and you are allowed to claim a tuition credit based on that money.
But taxes aren't always simple, the education tax benefits being particularly complex. The school should issue a 1098-T to, you with the tuition paid shown in box1. There should be nothing in box 5 (scholarships). But, some schools, mistakenly, include employer tuition assistance payments in box 5. If this happens (it probably won't), you'll have to make adjustments, in TurboTax, to claim your credit.
The next question/issue is: why is your employer treating this as taxable income to you? Employers are allowed to give up to $5250/year, tax free. Their tuition assistance/reimbursement plan must meet certain rules to qualify for tax free. You may not claim a tuition credit for tuition paid with a tax free assistance.
