I'm a full time student in Massachusetts and I'm making $55,000 before taxes. The refunds I'm receiving are not taxed. I'm confused on what to do since my first refund was for 2016 semester..although I received the money in Jan 2017?
Amounts received by an employee under a written educational assistance plan are excluded from taxable income, up to $5,250 per year. It would appear that your employer has the intention to treat the payment you just received as a 2016 benefit and the payment in May as your 2017 benefit, both within the maximum for the respective year.
The amount received should not be included in Box 1 of Form W-2. Since the benefit is not taxed, you have no reporting obligation on your tax return.
For more information, please see IRS Pub. 970 Tax Benefits for Education.
Amounts received by an employee under a written educational assistance plan are excluded from taxable income, up to $5,250 per year. It would appear that your employer has the intention to treat the payment you just received as a 2016 benefit and the payment in May as your 2017 benefit, both within the maximum for the respective year.
The amount received should not be included in Box 1 of Form W-2. Since the benefit is not taxed, you have no reporting obligation on your tax return.
For more information, please see IRS Pub. 970 Tax Benefits for Education.