My employer reimbursed me for my 2023 Fall semester in 2024. Can I claim that towards the $5250 allowance from 2023? The expense were incurred in 2023 per 1098T.

Forum|Forum|1 year ago
March 31, 2025
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KrisD15

Yes, if your employer refunded to you 5,250 (or less) for expenses that were paid in 2023, you can allocate that reimbursement to that 2023 expenses (as a refund).

The 5,250 should not have been reported as wages, so it should already be tax-free.

The expenses on the 2023 Form 1098-T (which is allocated to this employer reimbursement) should not have been used for an education credit on your 2023 tax year return or you may need to recapture that credit.

Pub 970

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SChen_0524

Hi,

I am in a similar situation, and I am unsure how to accurately report it.

I took graduate classes in 2024 (spring, summer, and fall) totaling 20,000 as shown on the 1098-T. $5,250 was reimbursed by my employer for the 2024 calendar year but the fall classes (ending in December 2024) was reimbursed by my employer for in the 2025 calendar year. When applying for the Lifelong education credits, would subtract the total amount reimbursed by my employer for both 2024 and 2025? or should I subtract the amount paid for fall classes and apply it to next year's taxes along with the 2025 reimbursement?

Hal_Al

Employee

Q. When applying for the Lifelong education credits, would subtract the total amount reimbursed by my employer for both 2024 and 2025?

A. Yes. Although mismatched years are a problem for some other education tax benefits, you are allowed to do it that way for employer reimbursement. Note: any additional employer reimbursement you get in 2025 will be taxable. That 2025 payment, although for 2024 tuition, counts as you 2025 tax free benefit.

Q. Or should I subtract the amount paid for fall classes and apply it to next year's taxes along with the 2025 reimbursement?

A. No. Your not allowed to claim 2024 tuition on your 2025 tax return. Furthermore, taxwise, your reimbursement must be matched to the tuition your employer tagged it for.