@shanesnh , generally agreeing with my colleague @Opus 17 about recognition of such benefits for US tax purposes. The very general rule is benefits that are offered by govt. or an agency that does not have any conditions and/or requirements ( e.g. UK offering child support payments if you have children under certain age for all residents ). would not count as income. Thus I would opine that your benefit (of free lessons) would fall into this category of non-recognizable benefit.
