Education amounts included in employer's W2 puts over $90k in income and can't claim AOC

Forum|Forum|5 years ago
February 3, 2021
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Need help / advice on this one as I haven't run into it before and not sure if there is a way around it.

My employer includes tuition reimbursement in Box 1 of my W2, so it is seen as "income", and effectively puts me over the $90k limit for any educational credits (AOC). However my situation is that without the education reimbursement being included, I would be below $80k, so would receive AOC.

Therefore, is there a way to claim the AOC credit when the tuition I am trying to claim credit for itself is the reason why I can't claim AOC??

Thank you in advance!

Not A Product Question

mglauner

You could ask for a Corrected W-2 that does not include your Tuition Reimbursement in your Wages. This is not normally how it is reported.

However, if your Adjusted Gross Income is between 80K and 90K, and you enter the full amount of Tuition paid (not entering your employer reimbursement since it is included in income), you may qualify.

You could make an IRA Contribution to reduce your AGI, if you are eligible.

Click this link for more info on Employer Reimbursement and AOC.