How do I fill out my turbo tax 1098t information when I have "tuition" in box 14 on my w2?

[gabrielle-06]

My employer added my graduate tuition into my pays divided equally thru the year, I paid tax on this benefit, then they removed it each pay as a deduction.   I understand why.  But, when filling out information for my 1098t, I have "tution" in box 14 on the W2. Is this amount in box 14 considered "scholoarships, fellowships, grants, or other aid already reported on Form W-2?

[Hal_Al · Accepted solution]

You basically ignore box 14. You do nothing with the tuition amount  in box 14.  It's only informational.  TurboTax will not pick it up or do anything with it.

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 on your tax return.  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.

The box 14 amount may the total tuition amount or just the excess over $5250. If that's not clear from your payroll records, you may have to ask your employer.  

[gabrielle-06]

This is super helpful.  You are correct in assuming that the amount in box 14 is my total tuition (~$18k) minus the $5250.  Where I am stuck, when entering my 1098T in Turbo Tax, I am asked "Tell us if any of the $XXX in Box 5 of your 1098T includes amounts already reported as income on your tax return?"   My assumption is my answer should be "Yes" and the amount I enter should be equal to the total amount of ~$18k.  Or do I answer "yes" and enter the ~13k from box 14?  Or do I answer  "no"?   This answer seems to affect the eligibility for my Lifetime Earning Credit.  Thanks in advance for your help.

[Hal_Al]

Answer  "Yes" and the amount you enter is the  ~13k (~18K - 5250) from box 14.  The net result is that the ~$13K (the amount included as income on your W-2) is used to calculate the LLC (Lifetime Earning Credit). 

 If you got more than $5250, the amount above $5250 is usually already included in box 1 of  your w-2. 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.