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Employee
June 1, 2019
Question

Hi my employer reimburses me for the school tuition but its a taxable income (clubbed into salary income on W2) so in such case can I get the tuition credit?

  • June 1, 2019
  • 2 replies
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Further, I would like to know what happens if the employer reimburses me next year for this year's tuition?

2 replies

Employee
June 1, 2019

It's somewhat strange that the reimbursement is taxable, since up to $5250 can be a tax-free employee benefit and by reporting it as taxable they are also increasing the amount of their share of FICA and medicare tax that they must pay.

Be that as it may, if your reimbursement is included in your taxable income, then you are eligible for whatever tuition credit or deduction you qualify for, because getting reimbursed with taxable money is basically the same as if they gave you a raise and you paid out of pocket. (which really is what happened.)  It won't matter if you pay in one year and get reimbursed in another year IF the reimbursement is included in your W-2.  Figure the credits based on when you paid.

(It's a different and more complicated story if you get reimbursed tax-free.)

Employee
June 1, 2019
Thanks. I guess I will check with my employer as to exactly how much tuition reimbursement they added into my W2.  They may have added the tuition above $5250
Employee
June 1, 2019
You would have to get the paperwork from your school stating how much you paid them and enter it with your itemized deductions
Employee
June 1, 2019
I have received form 1098 from my school but my question is since my employer reimburses it (as a taxable income and clubbed in salary income on W2) can i get tuition credit?