Employer Tuition Assistance and Lifetime Learning Credit

Forum|Forum|1 year ago
February 1, 2025
1 reply
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My employer paid me directly $9269 for tuition ($9174) and books ($95) in 2024. $5250 was tax free and the remainder ($4019) was taxable. My school includes the $9174 on my 1098T.

Am I able to qualify for the lifetime learning credit? I'm confused what amount to enter for employer provided assistance received (Don't include amounts already listed on a W2 or other tax document.

KrisD15

When you say your 1098-T includes the 9,174, in which box? It should be in Box 1 and nothing in box 5.

If Box 1 of the 1098-T reports 9,174 and Box 5 is blank, the question is if the tuition reimbursement was listed on your W-2. It usually is not.

If the 5,250 was given directly to you (as well as the remaining 9,174) and 3,924 was added to your income in Box 1 of your W-2, (as I assume was the case) when you enter the 1098-T, also report 5,250 as employer assistance in that section.

The program will read that there was 9,174 education expenses, your employer paid 5,250, therefore your credit will be based on 3,924 of expenses.

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rlg8Author

Correct the $9174 is in Box 1 of the 1098T nothing in Box 5. I calculated the taxable portion ($3924) is included in my wages in box 1 of my W2. So the taxable portion is applicable for the credit.

KrisD15

Yes, the taxable portion is what the credit would be based on

HOWEVER

I think you could actually allocate just 5,155 as employee assistance against the 1098-T since part of the 5,250 went for books and if the books are not listed on the 1098-T.

So if the tuition was 9174, which is listed on the 1098-T and the employer gave you 5,250, which 95 went to books (not on the 1098-T) that would leave 5,155 employer assistance you would need to report in the TurboTax program, giving you 4,019 that was added to your taxable income.

If I am following correctly, that would give you 4,019 towards the credit.

Now I see you had those figures in your first post. Yes, I agree.

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