Q. Is employer assistance already in the 1098-T in box 1?
A. No. No scholarship or employer assistance amounts are shown in box 1. Box 1 is the amount of tuition and fees that were actually paid, regardless of the source of the money.
Box 5 should also not include employer assistance, it is for scholarships. But, it is not uncommon for schools to include employer assistance, in box 5, when the employer sends the money directly to the school. You have to determine that.
By law your employer can only give you $5250 maximum, tax free. 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.
Q. What do I put for the employer assistance question in TurboTax.
A. The tax free $5250, unless it's already in box 5 of the 1098-T. If any of the $13,483 taxable assistance (I assume your total assistance was $18,733) is included in box 5, you need to remove it when you enter the 1098-T.
