Tuition reimbursement

Forum|Forum|1 year ago
January 28, 2025
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Hello I believe my employer is adding the tuition assistance I got has all taxable income.
For box 14(other) it states TTA: 14999.09

for box 1 it states 78617.38. When I check my year to date it is 63618. I use my 1098-T form it states all of my tuition was Employee assistance. I’m not sure what to do because it’s stating I owe but nothing shows for the 5250 that I know is used for non-taxable income. my question would be should I change box one to what my gross annual income actually was or should I change what my tuition assistance is minus the 5250 and what should I put on one 1098 – T form?

Not A Product Question

Hal_Al

Employee

The $5250 is (almost) never shown anywhere on the W-2. It sounds more like you got $20,249.38 (14999.38 + 5250) total reimbursement and your employer correctly entering the 14.999.38 on the W-2.

What are the numbers on the 1098-T?

Q. My question would be should I change box one to what my gross annual income actually was?

A. No. Do not mess with the W-2. If it's wrong, contact your employer.

Q. Should I change what my tuition assistance is minus the 5250 and what should I put on one 1098 – T form?

A. It depends on what box 5 of the 1098-T says. You need a better handle on what was actually paid.

When done right (by the school), employer assistance is not shown in box 5. But some schools do it anyway. The next issue is how much of the 14999 and 5250 is already shown in box 5. TurboTax can't handle a negative number input. You have to adjust the 1098-T for the facts.

You are allowed to count the $14,999, paid with YOUR after tax money, to claim the tuition credit. 14,999 is more than enough to get the maximum credit.

The 1098-T is only an informational document. The numbers on it are not required to be entered onto your tax return. However receipt of a 1098-T frequently means you are either eligible for a tuition credit or possibly your student has taxable scholarship income.

If you claim the tuition credit, you do need to report that you got one or that you qualify for an exception (the TurboTax interview will handle this)

You claim the tuition credit, or report scholarship income, based on your own financial records, not the 1098-T. In the 1098-T screen, click on the link "What if this is not what I paid the school" underneath box 1. You will then be able to enter the actual amounts paid.

Or if you find it easier, just change the numbers in boxes 1& 5 to what your records show. The 1098-T that you enter in TT is not sent to the IRS.