Lifetime Learning Credit, Reimbursed in Following Year, How to Report?

Hi,

I've gotten mixed responses on this, including from the IRS. I took the Lifetime Learning Credit in 2018, then received tuition reimbursement in 2019 from my employer. Can you exclude the reimbursement under the $5250 non-taxable allowable assistance, or do I have to recapture the credit as additional tax this year? I'm just not sure about the term "refund" for recaptures, as it seems to apply to getting an actual refund from the school, whereas the $5250 allowable refers to employer "assistance", so I'm unsure which to go by for "reimbursement". Thank you.

-MD

290

Employee Tax Expert

Feb 7, 2020 6:48:11 PM

You will need to report this amount as "Other Income" on Schedule 1.

You will not file an amended return for 2018.

See the attached for additional information on how to compute the amount you would report.

Please see the "Example" as highlighted as your guide.

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Lifetime Learning Credit, Reimbursed in Following Year, How to Report?