1098-T Employer paid university

Forum|Forum|1 year ago
January 14, 2025
1 reply
0 views

I received a 1098-T from my college that I am getting a bachelors degree by having my employer which is an elementary school who is my third-party payer for my tuition. I am in this apprenticeship program in Iowa called " Iowa TPRA program"(Teachers and Para educators Registered Apprenticeship) My employer does not put any income from this on our W-2 forms and they get an invoice from the university and pays them directly, no payment or money goes through the students. I was needing help on how to input the form 1098-T form into taxes. If my 1098-T form states in box 1 the amount is $7,950 and the Box 5 states I have $12,157.30. That's the only amounts listed in the boxes on my 1098-T form.

Not A Product Question

Hal_Al

Employee

We need more information.

Does the $12,157.30 in box 5 include the amount your employer paid?

Why is there a difference between box 1 and box 5 if your employer is only paying your tuition?

Is the program a scholarship or employer reimbursement?

The general rules are:

-Your employer is allowed to pay (or reimburse you) up to $5250, for tuition, tax free. Any tuition assistance over $5250 should be included in box 1 of your W-2 as taxable income.

-Scholarships that pay for qualified educational expenses (QEE)(tuition, fees and course materials) is tax free (no amount limit).

-Employer tuition assistance is not usually classified as scholarship, although colleges sometimes do mistakenly show it in box 5 of the 1098-T. There may be something about the TPRA program that may make it "scholarship".

-The difference (if box 5 is more) between box 1 and box 5 is usually taxable income to the student unless he has additional QEE not shown in box 1

LowmillertAuthor

It is a program type of program. The employer pays the college directly for tuition expenses. The reason for the differences between the boxes is from federal aid scholarships I personally applied for even thought the employer is paying for tuition so I can pay for school supplies like the computer and webcam needed to do the online classes and for student teaching clothes and supplies. The extra that is added in box 5 is the grants and scholarships i received that was extra. This is not a employer reimbursement type of thing.