My company is paying for my education i cecked the box saying i didnt pay for it.. it is asking if someone else, scholarships etc covered it.. need help
My company is paying for my education i cecked the box saying i didnt pay for it.. it is asking if someone else, scholarships etc covered it.. need help
It depends. According to this Turbo Tax link both Champ Carl and georgesT give very good answers.
If your employer reimbursement is included in your W2 wages, you may claim an educational credit.
If not, then no.
In the current tax law, employer can pay an employee up to $5,250 in educational assistance benefits each year on a nontaxable basis. The exclusion applies whether or not the courses taken are related to the employee's current job responsibilities or are part of a degree program.
Any amount paid by your employer over $5250 is taxable to you and that excess amount that is taxable can be claimed as an educational credit to you.
Remember, these are educational expenses leading to either a BA or MA degree and not designed to improve job skills.
I hope this helps but reach back to us anytime.
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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 anything additional about it on your tax return. 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.