I have excess scholarships/grants (Pell grant and Navy Tuition Assistance) and was wondering if the the Navy TA qualifies as tax-free employer assistance?

I am working on my taxes and am currently on my 1098-T. My amount billed for qualifying expenses in box 2 is: $7,750.00. My total scholarships in box 5 is $12,736.00. My scholarships/grants for 2017 were the Pell Grant : $7,236.00. The other $5,500.00 was from Navy Tuition Assistance. My question is after I input my 1098-T i see:

"Tell us if the scholarship amount from Box 5 of Brandon's 1098-T includes any of the following:              GI Bill benefits         Veterans' benefits         Tax-free employer provided assistance"

Would my Navy TA ($5500) count as tax-free employer provided assistance?

Also, should I be reporting the excess of my grants/ schlorships under income or will TurboTax automatically do that? Thank you!