I work full time at a college and get to take free graduate courses from the school. I take the courses at night part time. My 1098-T reflects the amounts in both Qualified Education ($5,820) and the Scholarship/Grants ($5,740) in Box 1 and 5. Do I need to include the amount in Box 5 as income? My W-2 did not include any income from the scholarship. Also, box 9 "Check if Graduate Student" was not checked on my 1098-T. I know that in the tax code the tuition reduction is tax free for graduate students if:
1) It is provided by an eligible educational institution
2) You are a graduate student who performs teaching or research activities for the educational institution.
I qualify for part 1, but am confused if I qualify for part 2. I do not teach or perform research for the college, I just work full time for the school, so not sure if that disqualifies me and I have to claim the amount as income. Also, since box 9 "Check if Graduate Student" was not checked off, would that mean the school/IRS would not consider the courses as "Graduate Student", even though I have completed a 4 year undergrad degree. The courses are also related to further my current job (not taking courses as a career change) .
