Employer paid tuition reimbursement

[elizabeth-stolz]

My employer paid $5000 worth of tuition cost in 2015.  I claimed this as employer paid tuition assistance on my return in 2016.  I left that employer in 2016 and had to repay the $5000.  Can I claim that tuition on my 2017 return?  If so, how?

[MichaelDC · Accepted solution]

No. You can't claim that tuition on your 2017 return. The first $5250 of education reimbursement  is usually tax free. That is, it was never included as taxable income on your W-2 when your former employer paid for your tuition. However, since you have now paid the tuition, out of pocket, you can claim the tuition credit that you couldn't claim in 2015. You can go back and amend previous year return to claim the education credit.