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kaylee55
New Member

I received a 1098-T from my University for Grad School. However, my employer reimbursed me for all costs shown in Box 1. They did not add this to my W2. What do I do?

 
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Accepted Solutions
Hal_Al
Level 15
Intuit Approved!

I received a 1098-T from my University for Grad School. However, my employer reimbursed me for all costs shown in Box 1. They did not add this to my W2. What do I do?

Simple answer: do nothing. Do not even enter the 1098-T.  You have nothing to report since your tuition was paid for by Tax free reimbursement ( a kind of scholarship).

 

That said, The first $5250 of employer educational assistance is usually tax free. If you got more, and paid tax on it (this should be reflected on your w-2) that part is considered your money and can be used to claim the tuition credit.

 

Furthermore, there is a tax loop hole available.  You can claim the tuition credit on the first $5250, but then you have to report the reimbursement as income. Since the credit is worth 20% (for grad students), this may be advantageous if you are in the 12% tax bracket.  It can get a little complicated reporting the 2019 reimbursement, as income.  

Report the income on line 8 of form 1040 (schedule 1) as "Taxable Reimbursement". TurboTax can not automatically pull that from your w-2. You have to enter it manually. In TurboTax enter at::

 

Federal Taxes Tab

Wages and income

Scroll down to:

--less common income

---Misc Income, 1099-A, 1099-C..... (Press start)

----On the next screen, select Other reportable income

-----Two screens in, type Tuition reimbursement  and the amount.

 

 

View solution in original post

1 Reply
Hal_Al
Level 15
Intuit Approved!

I received a 1098-T from my University for Grad School. However, my employer reimbursed me for all costs shown in Box 1. They did not add this to my W2. What do I do?

Simple answer: do nothing. Do not even enter the 1098-T.  You have nothing to report since your tuition was paid for by Tax free reimbursement ( a kind of scholarship).

 

That said, The first $5250 of employer educational assistance is usually tax free. If you got more, and paid tax on it (this should be reflected on your w-2) that part is considered your money and can be used to claim the tuition credit.

 

Furthermore, there is a tax loop hole available.  You can claim the tuition credit on the first $5250, but then you have to report the reimbursement as income. Since the credit is worth 20% (for grad students), this may be advantageous if you are in the 12% tax bracket.  It can get a little complicated reporting the 2019 reimbursement, as income.  

Report the income on line 8 of form 1040 (schedule 1) as "Taxable Reimbursement". TurboTax can not automatically pull that from your w-2. You have to enter it manually. In TurboTax enter at::

 

Federal Taxes Tab

Wages and income

Scroll down to:

--less common income

---Misc Income, 1099-A, 1099-C..... (Press start)

----On the next screen, select Other reportable income

-----Two screens in, type Tuition reimbursement  and the amount.

 

 

View solution in original post

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