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Employee
April 3, 2022
Question

education expenses

  • April 3, 2022
  • 2 replies
  • 0 views

Hello. 

 

I received a 1098-T for 2021.  I left this employer in 2022 and had to pay back the full amount that was reported on the 2021 form 1098-T.

How do I handle reporting for 2021? 

Thank you

    2 replies

    April 3, 2022

    The 1098-T has nothing to do with your employer or the fact that you left your employer and had to pay back the full amount.    The 1098-T is reporting the amount of tuition you paid for tuition.   To report the 1098-T on your tax return follow these instructions:

     

    1. Open TurboTax and go to your tax file (if it is not already opened)
    2. Go to the Deductions and Credit section of the Federal return
    3. Scroll down to Education, click Show More, and then
    4. Click on Expenses and Scholarships (Form 1098-T and
    5. Click on Start
    6. Click through the screens, answer the questions and enter the information from your Form 1098-T.

     

    Hal_Al
    Employee
    April 3, 2022

    I assume you got reimbursed by your employer on a tax free basis in 2021.  Normally that would prevent you from claiming a tuition credit on your 2021 tax return.  However paying it back, in 2022, effectively converted the tax free assistance to a loan.  Since you have now  effectively paid the 2021 tuition with your own after money, you may claim the tuition, shown on the 2021 1098-T, for the tuition credit on your 2021 tax return.