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rebelyell87
New Member

Can I claim tuition expenses paid in 2016 without a 1098T?

My employer pre-paid for my 2016 Master's degree tuition in full in 2015. As my employer pays for a certain portion of my tuition every year, I had to repay them a portion of my 2016 tuition. I made this payment in 2016. Because the tuition was paid by my employer in 2015, I did not receive a 2016 1098T. Can I claim the repayment I made to my employer in 2016? I have a receipt of payment to my employer dated in 2016.

8 Replies
Hal_Al
Level 15

Can I claim tuition expenses paid in 2016 without a 1098T?

It's not clear what you are saying. "As my employer pays for a certain portion of my tuition every year, I had to repay them a portion of my 2016 tuition".
Employers are allowed to give employees up to $5250 tuition assistance, tax free, each year. Any amount over that is to be treated as taxable income. So, it matters whether you paid back taxed or tax free money
rebelyell87
New Member

Can I claim tuition expenses paid in 2016 without a 1098T?

My employer pays $3,000 per year in tuition assistance. My tuition bill for 2016 classes was $4,500. My employer paid the full tuition ($4,500) in 2015 as they are billed directly by the college. In 2016 I had to pay the difference ($1,500) to my employer. Can I claim that $1,500 on my 2016 taxes?
wschupp
New Member

Can I claim tuition expenses paid in 2016 without a 1098T?

I am not sure, but would guess you can. If you can't find the answer in FAQ's go to TurboTax support. Then place a phone call for the help you need. I had a problem with tuition expenses and the 1098-T form. You must enter the numbers exactly as they appear on the 1098-T. If block 2 has an incorrect value check the block below to proceed.

Hal_Al
Level 15

Can I claim tuition expenses paid in 2016 without a 1098T?

It's complicated.

Was the $1500 included as taxable income on your 2015 W-2?  If no (and no is the most likely answer), you cannot claim the $1500, you repaid in 2016, as a deduction. This is because you are not repaying income that was previously taxed.

However, what you can claim is $1500 toward the tuition credit on your 2015 tax return. That may require you to file an amended 2015 return.

rebelyell87
New Member

Can I claim tuition expenses paid in 2016 without a 1098T?

So I cannot claim $1,500 I paid in 2016, for classes taken in 2016, as a 2016 expense?
Hal_Al
Level 15

Can I claim tuition expenses paid in 2016 without a 1098T?

Technically, no. You did not pay tuition in 2016. You paid back a loan, from your employer. The loan money paid tuition in 2015.
rebelyell87
New Member

Can I claim tuition expenses paid in 2016 without a 1098T?

Thank you for the help. Not the answer I was hoping for unfortunately, but I appreciate it. I guess I don't understand how I could take credit for paying tuition costs because of how my employer handles the transaction with the college.
Hal_Al
Level 15

Can I claim tuition expenses paid in 2016 without a 1098T?

The college received $4500 in 2015. For tax purposes, that's when the tuition was paid. Although it appeared it was all paid by employer assistance; in actuality, it wasn't. $3,000 was paid by a grant and $1500 by a "student" loan. Essentially the same as millions of other students. The tuition is deductible when the college is paid, not when the student pays off the loan.
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