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Level 2
posted Apr 3, 2025 2:00:55 PM

Higher Education

If I take classes for degree and the employer paid for the tuition, can I claim the credit for higher education?

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1 Best answer
Level 15
Apr 3, 2025 4:30:31 PM

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 any additional income on your tax return.  

But, since you have paid tax on that part, it  is considered your after tax money and that amount can be used  to claim the tuition credit. For tax purposes, it’s not really reimbursement, it’s your money.

3 Replies
Expert Alumni
Apr 3, 2025 2:03:37 PM

No.  Not unless they included the income on your W-2 in box 1 as taxable wages.  If the tuition was paid with money that you did not pay tax on, you cannot claim a credit for it.

Level 15
Apr 3, 2025 4:30:31 PM

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 any additional income on your tax return.  

But, since you have paid tax on that part, it  is considered your after tax money and that amount can be used  to claim the tuition credit. For tax purposes, it’s not really reimbursement, it’s your money.

Level 2
Apr 8, 2025 8:53:11 AM

Thank you for your answer, this really help.