in [Event] Ask the Experts: Tax Law Changes - One Big Beautiful Bill
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If the reimbursement received in 2024 was tax-free, be sure to reduce the 2023 education expenses by that amount.
There will be no need to report the income for tax year 2024.
If the reimbursement was taxed, you needn't reduce your education expenses.
The additional income will be reported and taxed for tax year 2024.
“Refunds received after 2023 but before your income tax return is filed. If anyone receives a refund after 2023 of qualified education expenses paid on behalf of a student in 2023 and the refund is paid before you file an income tax return for 2023, the amount of qualified education expenses for 2023 is reduced by the amount of the refund.”
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