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April 3, 2025
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Higher Education

  • April 3, 2025
  • 1 reply
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If I take classes for degree and the employer paid for the tuition, can I claim the credit for higher education?

    Best answer by Hal_Al

    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; it’s  safe to assume it does not need to be reported. 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 and you do not need to enter any additional income on your tax return.  

    But, since you have paid tax on that part, it  is considered your after tax money and that amount can be used  to claim the tuition credit. For tax purposes, it’s not really reimbursement, it’s your money.

    1 reply

    April 3, 2025

    No.  Not unless they included the income on your W-2 in box 1 as taxable wages.  If the tuition was paid with money that you did not pay tax on, you cannot claim a credit for it.

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    Hal_Al
    Hal_AlAnswer
    Employee
    April 3, 2025

    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; it’s  safe to assume it does not need to be reported. 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 and you do not need to enter any additional income on your tax return.  

    But, since you have paid tax on that part, it  is considered your after tax money and that amount can be used  to claim the tuition credit. For tax purposes, it’s not really reimbursement, it’s your money.

    April 8, 2025

    Thank you for your answer, this really help.