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What should I do if my total tuition assistance exceeds $5250 but it isn't reflected on my W2?

Forum|Forum|6 years ago
February 15, 2020
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I changed employers this year. Both of my employers paid tuition assistance of about $5000. In total, this exceeds the maximum non-taxable amount of $5,250, but neither included the excess assistance on my W2. Do I need to report the extra tuition assistance? Where do I report it?

TurboTax Premier Online

Best answer by KrisD15

No, the limit is 5,250 per employer.

There is no income to report unless you received more than your education expense for 2019.

You cannot use the expenses towards a credit.

If you received more than the education expenses you paid, report the excess as Other Income.

Employer Tuition Assistance

KrisD15Answer

No, the limit is 5,250 per employer.

There is no income to report unless you received more than your education expense for 2019.

You cannot use the expenses towards a credit.

If you received more than the education expenses you paid, report the excess as Other Income.

Employer Tuition Assistance

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Hal_Al

Employee

You are only allowed $5250 of employer reimbursement, tax free. Any excess due to multiple employers is taxable to you. Enter as Other income, if it is not included on your W-2.

Under IRC Section 127: "If the employee has multiple employers, the benefit cannot exceed $5,250 per calendar year for all employers combined." Reference: https://www.connectyourcare.com/blog/tuition-reimbursement-benefits-employers/

“this section would exclude from gross income more than $5,250 of educational assistance furnished to an individual” https://www.law.cornell.edu/uscode/text/26/127

In TurboTax (TT), enter at:
- Federal Taxes tab (Personal in Home & Business)

- Wages & Income

Scroll down to:

-Less Common Income

-Misc Income, 1099-A, 1099-C

- On the next screen, choose – Other reportable income

- On the next screen, click yes

- On the next screen, you'll get blanks to enter the amount and a description. It will go on line 8 of Schedule 1 as "Other Income"

Because you have now paid some of your tuition with "after tax money", you are eligible to claim a tuition credit for that amount.