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How do I report employer tuition reimbursement?

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!
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3 Replies
DDollar
Expert Alumni

How do I report employer tuition reimbursement?

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.

Non-accountable Plans

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.




jed2643
New Member

How do I report employer tuition 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
jessical
New Member

How do I report employer tuition reimbursement?

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