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I received a 1098-T. Paid for the classes up front and my employer reimbursed me after the semester. Can/should I enter this as an Education expense to qualify for credit

The credit I'm referring to is the Lifetime Learning Credit. Since my employer fully paid for the classes after I received an A, can I enter this to benefit from the credit since I paid for it initially? I wouldn't think so, but wanted to ask.... Every dollar counts..
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Accepted Solutions
KrisD
Intuit Alumni

I received a 1098-T. Paid for the classes up front and my employer reimbursed me after the semester. Can/should I enter this as an Education expense to qualify for credit

No, the expenses paid for by reimbursement are not allowed to be used towards the credit. At the same time, the reimbursement should not be included in your wages since it should not be taxable to you. 

CLICK HERE for IRS Pub 970 Education Credits

CLICK HERE for TurboTax information on Education Credits

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1 Reply
KrisD
Intuit Alumni

I received a 1098-T. Paid for the classes up front and my employer reimbursed me after the semester. Can/should I enter this as an Education expense to qualify for credit

No, the expenses paid for by reimbursement are not allowed to be used towards the credit. At the same time, the reimbursement should not be included in your wages since it should not be taxable to you. 

CLICK HERE for IRS Pub 970 Education Credits

CLICK HERE for TurboTax information on Education Credits

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