Are tuition reimbursement from employers included in the W-2?

[Hal_Al]

Q. Are tuition reimbursement from employers included in the W-2?

A. Maybe.

It's a little complicated. There's pre tax reimbursement and after tax reimbursement.

By law your employer can only give you $5250 maximum, tax free. If your tuition was less than that, and you employer reimbursed it all; it’s  safe to assume it does not need to be reported. You do not even need to enter your 1098-T. You have nothing to claim.

 If you got more than $5250, the amount above $5250 is usually already included in box 1 of  your w-2 and you do not need to enter anything additional income on your tax return.  

But, since you have essentially paid tax on that part, it  is considered your after tax money and that amount can be used  to claim the tuition credit.

[MindyB]

The first $5,250 of tuition reimbursement is allowed to be reimbursed to you tax free, and thus wouldn't be included in Box 1 of your W-2.  If your reimbursement exceeded that amount, it would be taxable, and included in your wages.  The amount above $5,250 is allowed to be used when figuring your education credits.

See: Educational assistance programs can be used to help pay