Have a Tax Question? Ask a Tax Expert
Is tuition assistance from an employer counted as taxable income? I received tuition assistance last year for school. The school sent me a form 1098-T for educational expenses. When I file, do I need to subtract what my employer paid from the amount shown on the 1098-T? If so, should I submit an amended return for last year since I did not do this? Also if not, where do I put it? My employer tells me this amount is not included on my W2.I want to make sure I get this right.The amount is less than $1,500. Thanks!
Tuition assistance up to $5,250 is not taxable as wages. Amount over this amount is reported as taxable income on W-2. If this amount is not included on W-2 than it was not taxable.
If that is the case than you cannot take a deduction for education credit for this amount. If you have taken such a credit than you need to amend and correct your tax return.
That is not correct.
Since your employer paid for the education expenses- you cannot claim the education credit.
The education fees was not paid by you but your employer.
Hence, you need to amend and correct the tax return if you claimed such credits.