You don't need to report this benefit on your tax return. The IRS does not require taxation of tuition remission benefits for undergraduate courses, unless the spouse or child is not claimed as a dependent on the employees’ tax return.
(In some cases, there are tax implications for tuition remission benefits. If so, your employer (the school) will report them on your Form W-2 and 1098-T)
For a detailed discussion on this issue see Tuition
Remission -- A Tax Free Fringe Benefit, from the National Association of Independent Schools.
