There's nothing easy in taxes.There may or may not be a notation in box 14 about the reimbursement. You could compare your year end wage statement to your W-2. You may just have to ask your employer.
By law your employer can only give you $5250 maximum, tax free. If your tuition was less than that, and you employer reimbursed it all; it’s safe to assume it does not need to be reported. You do not even need to enter your 1098-T. You have nothing to claim.
If you got more than $5250, the amount above $5250 is usually already included in box 1 of your w-2 and you do not need to enter anything additional on your tax return. Since you have essentially paid tax on that part, it is considered your after tax money and that amount can be used to claim the tuition credit.
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TAX LOOP HOLE for this situation
Usually, you may not claim a tuition credit for expenses paid (or reimbursed ) by tax free money (e.g. scholarships, grants, VA benefits or employer reimbursement). Employers are allowed to reimburse employees up to $5250 tax free. Anything over that is taxable and included as taxable income on your W-2. So, any expenses over $5250, including books, may be used to claim a tuition credit.
But, you have a choice (actually a tax loop hole). You may choose to include any of the $5250 (normally tax free) reimbursement as taxable income. Since taxed income is considered your money, you can use that amount to claim the education credit.
It may get a little complicated reporting the now taxable reimbursement correctly. It's best explained by example. Lets say you paid $6000 in tuition, in 2016, and use $4000 of that to claim the tuition credit ($4000 is all you need to get the maximum amount of credit on the American Opportunity Credit).
Your employer reimburses you $6000. On your 2016 W-2, he shows $5250 (the maximum allowed) of tax free educational reimbursement and $750 of taxable reimbursement. $750 will have already been included in box 1 of your W-2 as taxable income. You now have to report $3250 (4000-750) as additional taxable income on your 2016 return. $3250 goes on line 21 of form 1040 as "Taxable Reimbursement". TurboTax can not automatically pull that from your w-2. You have to enter it manually. In TurboTax enter at::
Federal Taxes Tab
Wages and income
Scroll down to:
--less common income
---Misc Income, 1099-A, 1099-C..... (Press start)
----On the next screen, select Other reportable income
-----Two screens in, type Tuition reimbursement and $3250
Alternatively (using the numbers in the example), you can use only $750 to claim the tuition credit in 2016. "How do you fill out the 1998-T?" You enter the 1098-T, exactly as shown. Later, in the education interview, you will be asked if you got any employer reimbursement.
