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February 4, 2023
Question

Employer paid education expenses directly. I received a 1098-T. What do I do?

  • February 4, 2023
  • 1 reply
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1 reply

Hal_Al
Employee
February 4, 2023

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; 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.  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.

 

You say "I received a 1098-T". I assume the amount paid was shown in box 1, but nothing was in box 5 (sometimes schools will show employer reimbursement in box 5).   If the amount in box 1 was less than $5250, just don't enter the 1098-T.   

 

What if f the amount was more than $5250? You claim the tuition credit, based on your own financial records, not the 1098-T. In the 1098-T screen, click on the link "What if this is not what I paid the school" underneath box 1. Enter the amount over $5250.  Example: if box 1 was $6000, you enter $750.