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1098-T education credit. I did not pay the whole amount in my 1098-T. My employer reimbursed me for some of the educational cost. So where do I make this adjustment?

Forum|Forum|4 years ago
February 16, 2022
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TurboTax Deluxe Online

Best answer by Hal_Al

After entering your 1098-T, the interview will get to a page that asks about other kinds of aid, including employer assistance. Enter the amount of tax free assistance. Sometimes, if the employer pays the school directly, the employer assistance is already included in box 5 (scholarships) of the 1098-T. Verify whether this is your situation.

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.

M

MinhT1

The amount used for claiming education are qualified education expenses you actually paid to the school in 2021 which should be shown in box 1 of form 1098-T.

If your box 1 does not show the correct amount paid, when filling out your form 1098-T in TurboTax, just enter the amount in box 1 of your form 1098-T on the entry screen.

Under box 1, on the 1098-T screen is a radio button: This is not what (student name) paid to this school. Click on that and you will be given a chance to enter what was actually paid in 2021.

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Hal_AlAnswer

Employee

After entering your 1098-T, the interview will get to a page that asks about other kinds of aid, including employer assistance. Enter the amount of tax free assistance. Sometimes, if the employer pays the school directly, the employer assistance is already included in box 5 (scholarships) of the 1098-T. Verify whether this is your situation.

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.