Tuition refund made to Employer but I am paying the taxes on the refund

Forum|Forum|5 years ago
March 2, 2021
1 reply
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So my university mischargede me out of state tuition. My tuition is payed by my employer. The refund was sent back to my employer and not me. The refund for the fall semester was not done until January of the next year so my 1098 still reflects the full old tuition and not the refund. I will be paying income tax on the full amount for 2020. How will the refund be reflected in my 2021 taxes? Will I get my money back because that "income" went back to my employer and not to me right? I already contacted my HR and the school and they both blame eachother and according to them the 1098 can't be changed. It was a refund of over $7000 so that's over $7000 I'm having to pay taxes on.

Not A Product Question

KrisD15

When you enter the 1098-T use the link under Box 1 on the 1098-T screen that says "This is not what I paid" and enter the reduced amount.

According to the IRS:

“Refunds received after 2020 but before your income tax return is filed. If anyone receives a refund after 2020 of qualified education expenses paid on behalf of a student in 2020 and the refund is paid before you file an income tax return for 2020, the amount of qualified education expenses for 2020 is reduced by the amount of the refund.”

IRS Pub 970 Page 15

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