1098-T- Tuition paid by Employer

[Hillbeans]

Hope someone can help me. The tax info on the web is pretty confusing. Is anyone else going to school and your employer is paying the tuition?? I have a 1098-T for $8250 and I'm just not sure I can take the deduction because I didn't pay for it (the employer did). It's giving me a $750 refund. On my Turbo Tax software, it doesn't specifically say anything about employer paid tuition.

It seems weird to itemize it on my taxes if the employer paid for it. Is anyone else taking the credit for this on their taxes?

 

[KathyTX]

Don't you also have to claim the tuition paid by your employer as income?

 

[Dan Murphy]

http://www.turbotax.com/ts/t_and_r/articles.php?name=TuitionAssistanceTaxation

 

[Hillbeans]

Thanks for the link. I looked at the W2 and it's not on there as income. For some odd reason, in my Tax Cut program, there isn't a separate 1098-T section for this income. According to your link, $5250 of it is excluded. For the life of me, I just don't know where to add it!

 

[Hillbeans]

I think, as I read these instructions, this education is counted as a "Non-taxable fringe benefit" because it's education needed to help perform the job. I believe it doesn't have to be entered.

 

[floridafam]

My husband had some of his tuition paid by his employer. I believe we had to count it as income. I'll go check and report back. I know you can't itemize it if your employer paid for it. Someone correct me if I am wrong.

 

[kilee]

Is Turbo Tax easy to use. We only file a handful of deductions. Mostly medical and in the past we have qualified for EIC (don't think we do this year).

I'd like to give it a try, but don't want to waste the money if it's not very self explanatory.

 

[Dan Murphy]

TT is a breeze, just asks you questions, very intuitive, very good.

 

[tiggersmom2]

TT is the bomb! It is so easy that my 10 year old could do it!

 

[ToyStory Fan]

Originally posted by Hillbeans
I think, as I read these instructions, this education is counted as a "Non-taxable fringe benefit" because it's education needed to help perform the job. I believe it doesn't have to be entered.

You have to be a little bit careful about how you interpret it, but if it qualifies you for a new/different position than it will be considered taxable income. Very few tuition arguments can be made that they are to maintain the "status quo".

If you are in a finance/accounting field, the tuition for an MBA in Finance or Accounting will technically qualify you for a new job, but you could easily make an argument that it is required for your current job. Especially if your employer doesn't really provide any formal training classes. It's likely not a big deal, but it is something to be careful of.

 

[Hillbeans]

I read about 5 IRS publications yesterday. Since this isn't on the W2, it's counted by the company as a non-taxable fringe benefit. I went on the AOL Finance/Tax center help and a few people had a similar question. The tax advisors told them to keep the 1098-T for your records, but that it doesn't need to be reported on the 1040.

So strange...I know my taxes very well and this isn't explained well at all in any format.