I received a 1098-t for tuition paid, but I was reimbursed from my employer for the tuition. I did pay for text books out of pocket though. how should I handle this?

[ThomasM125]

You should enter the Form 1098-T in the Deductions and Credits section, then Education, then Expenses and scholarships (Form 1098-T). After you enter the Form 1098-T, you will see a screen that says Tell us about any scholarships or grants. On that screen there is an option to indicate that you received tax-free education assistance from an employer and a box where you should enter the tuition that was paid by your employer.

[Hal_Al]

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.

*If you are an undergrad, technically the book costs qualify for a tuition credit (AOC) equal to the cost of the books.  But the American Opportunity Credit (AOC) is limited to being claimed 4 times in your academic career.  If there is a possibility, you can use the AOC in the future for 4 bigger credits (up to $2500 each year), you may not want to waste one of your 4 times on a small book credit.  You must be a half time or more student to claim the AOC.