1098-T and employer reimbursement

Forum|Forum|5 years ago
March 14, 2021
1 reply
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I received a 1098-T with box 1 filled for $1600. I completed the education section and TT added $1600 to my refund. My employer reimbursed me for my school expenses already... Should I be getting that $1600 back in my refund or did I enter something wrong?

Thanks

Hal_Al

Employee

You entered (or failed to enter) something wrong*.

Just don't enter the 1098-T, if you know your are not eligible for a tuition credit**.

Employers are allowed to reimburse tuition, tax free, up to $5250. Since you are already getting one $1600 tax benefit (tax free reimbursement), you don't get to claim the tuition credit in addition. That would be double dipping.

If, for some reason, the reimbursement was not tax free, then you can claim the credit.

*After entering the 1098-T, you should have reached a screen asking about employer reimbursement. After entering the offsetting $1600, TT would calculate no credit.

** The 1098-T is only an informational document. The numbers on it are not required to be entered onto your tax return.