Answer YES when asked if you received:
-Fellowship
-Employer-provided assistance
-Veteran education benefits
-Other tax-free assistance
Enter the $1000 at:
Employer-Provided Assistance: _______
Since that is tax free assistance, that $1000 cannot be used in calculating your tuition credit. Entering it here causes TurboTax to reduce the amount in box 1 of your 1098-T by $1000, before calculating the credit. If your employer sent the $1000 directly to the school, the school may have already included that amount in box5 of your 1098-T. Be sure that didn't happen before you enter the $1000 at Employer provided assistance.
