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Most of the time your employer can provide educational assistance tax-free if the education is job-related or you work for a college or university. In that case, you are only paying the extra $100 out of pocket, but since you are paying it out of pocket, you can use it to claim any eligible tax benefits.
If the value of the tuition is included as taxable wages in box 1 of your W-2, then you can apply the entire amount toward any tax credits, even though you are not paying the fees directly, because paying tax on the fees makes it the same as if you paid it after-tax.
In all cases, the coursework needs to be taken at an institution of higher education that is eligible to participate in US Dept of Education student aid program (loans, Pell grants, etc.) If the school is not so accredited, you can't take a tax break for the tuition.
Most of the time your employer can provide educational assistance tax-free if the education is job-related or you work for a college or university. In that case, you are only paying the extra $100 out of pocket, but since you are paying it out of pocket, you can use it to claim any eligible tax benefits.
If the value of the tuition is included as taxable wages in box 1 of your W-2, then you can apply the entire amount toward any tax credits, even though you are not paying the fees directly, because paying tax on the fees makes it the same as if you paid it after-tax.
In all cases, the coursework needs to be taken at an institution of higher education that is eligible to participate in US Dept of Education student aid program (loans, Pell grants, etc.) If the school is not so accredited, you can't take a tax break for the tuition.
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