I paid with my credit card for graduate school courses. After I completed each course, my employer cut me a check to reimburse me for a portion of the tuition. I did not receive any tax documents from my employer regarding this reimbursement, but I do have the stubs from the checks. How do I report this reimbursement? Thank you!
It sounds like you were reimbursed under an Accountable Plan. If that is correct, you do not need to do anything. According to the IRS:
How you treat reimbursements depends on the arrangement you have with your employer.
There are two basic types of reimbursement arrangements—accountable plans and no-naccountable plans. You can tell the type of plan you are reimbursed under by the way the reimbursement is reported on your Form W-2.
To be an accountable plan, your employer's reimbursement arrangement must require you to meet all three of the following rules.
Your expenses must have a business connection. This means your expenses must be deductible under the rules for qualifying work-related education explained earlier.
You must adequately account to your employer for your expenses within a reasonable period of time.
You must return any reimbursement or allowance in excess of the expenses accounted for within a reasonable period of time.
If you are reimbursed under an accountable plan, your employer shouldn't include any reimbursement of income on your Form
W-2, box 1.
Your employer will combine the amount of any reimbursement or other expense allowance paid to you under a non-accountable plan with your wages, salary, or other pay and report the total on your Form W-2, box 1.
You can deduct your expenses regardless of whether they are more than, less than, or equal to your reimbursement.
If it is an accountable plan, does the 1098-T still needs to be reported? How about the portion of education expenses that are not being reimbursed by the employer, can it still be deducted? Thank you