Yes, you still want to enter the 1098-T information. You also want to enter your employer reimbursement, which will reduce the amount of education credit that you are receiving. You only receive credit for tuition you pay for out-of-pocket or through loans. As you suspected, you do not get credit for scholarships, grants, or employer assistance.
To enter the 1098-T:
- Open or continue your return
- Select Search and search for 1098t
- Select the Jump to link in the search results
- On the Do you want to enter your higher education expenses? screen, answer Yes
- Answer Yes to Did you get a 1098-T for the year? and Continue
- On the next screen, you can choose how you'd like to add your 1098-T. You can upload a digital copy from your computer or type it in yourself. Select which option you'd like and Continue
- After entering the information from the 1098-T you will navigate through several more questions. Eventually you will get to a screen that asks Did Jack Receive a Scholarship or Grant in 2021? Note that TurboTax also indicates to include other types of aid, including employer-provided assistance. Answer Yes and then enter the amount of Employer-Provided Assistance received on the appropriate line.
After it all shakes out, you may still be eligible for an education credit. It just may be significantly lower than it was before you entered the employer reimbursement.
