2003472
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

If I paid out of pocket for my masters degree, and was sent a 1098t from the school, but my employer reimbursed me and never put the reimburment on my w2, can I claim it?

I paid out of pocket for masters. Was reimbursed later with a check from employer but they never noted it on my W2 or with a supplemental form. The school which I got my masters from sent me a 1098t that was in my name and SSN.

Can I claim this as a tuition expense?
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

2 Replies
ColeenD3
Expert Alumni

If I paid out of pocket for my masters degree, and was sent a 1098t from the school, but my employer reimbursed me and never put the reimburment on my w2, can I claim it?

Please see this answer from DDollar.

 

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.

Hal_Al
Level 15

If I paid out of pocket for my masters degree, and was sent a 1098t from the school, but my employer reimbursed me and never put the reimburment on my w2, can I claim it?

You were reimbursed on a tax free basis. So, you cannot claim the same money for a tuition credit.  That would be "double dipping" on tax benefits. 

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question