Do I need to report my 1098T if my tuition was paid by my employer even if grant money was received?

[avgreen55]

I am currently in a training program through my work at a local Technical school. I received a 1098T from the school for the cost of the accredited classes that we took which was around $1100. The program is 100% paid for by my employer but the form also lists that $1600 was received by the school. Do I need to report this on my tax return this year?

[MichaelMc]

Generally, you should not enter your 1098-T if your employer reimbursed you for the tuition.

Amounts received by an employee under a written educational assistance plan are excluded from taxable income, up to $5,250 per year.

If your 1098-T reflects other grants, in addition to the tuition paid by your employer, the tax treatment of that money will depend on the type of grant. Certain educational benefits, such as benefits under the GI Bill, are tax-exempt. Pell Grants are tax exempt, provided they are spent only on qualifying tuition, fees, and required books and supplies. But, if you have received private grants or scholarships, and the amount exceeds what you owed in tuition and fees, the excess may be taxable income. You should enter the Form 1098-T, answer all the questions, and let TurboTax help you determine if any of the scholarship or grant funding is taxable.

For more information, please see IRS Pub. 970 Tax Benefits for Education.

[Edited for content. 15 February 2017, 10:29 AM PST]

[MichaelMc]

The above answer was edited for content on 15 February 2017, 10:29 AM PST.