There are different types of employer education benefits that fall under different tax codes.
Since your employer included your full tuition in box 5 as a scholarship, it is likely they are using code 26 U.S. Code § 117 - Qualified scholarships. So if box 1 and box 5 are equal, you would not have any taxable scholarship income.
There is also code 132D Qualified Employee Discount which are non taxable fringe benefits.
In both of these situations, the benefit is not limited to $5,250.
If they are using either of the above codes, then you would not have to pay PA tax on the scholarship or tuition discount.
For both of these situations, you also would not include anything else on your tax return related to the tuition, other than the 1098-T. At the same time, you cannot take any education credits for tuition that was fully paid by scholarships.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
