1098-T Box 5 blank - but received employee tuition assistance

[Balgraf]

If one has a 1098-T and box 5 is blank and they thier employer reimbursed them for tuition (under the tax-free limit) where does that get entered in turbo tax?   Do you just "pretend" there was an amount equal to the employee reimbursement in Box 5?  There is nothing on the W-2 that shows the reimbursement, other than wages.

[Hal_Al]

Easy way: just don't enter the 1098-T.  You're not eligible for a credit since Box 1 was totally covered by tax free assistance. The 1098-T is only an informational document. The numbers on it are not required to be entered onto your tax return.

That said, after entering the 1098-T, you will reach a screen titled "Did (student's name) receive any of the following tax free benefits last year.  Answer yes. A box will pop up to enter the amount of employer assistance. 

Instead, your screen might say "Did you receive a scholarship or grant"  (this appears to happen when box 5 is blank).  Answer yes and the pop up boxes will include one for employer-provided assistance. 

[Balgraf]

The reimbursement was about just half the tuition amount of $5,359.00.   The problem is I never get to the screen that asks that question.  I only get to that screen if I put an amount in the Box 5 information field (which only lowers the refund by $64.00).  Any help would be appreciated.    

[Hal_Al · Accepted solution]

Yes, just enter an amount equal to the employee reimbursement in Box 5 of the 1098-T.

The 1098-T is only an informational document. The numbers on it are not required to be entered onto your tax return. However receipt of a 1098-T frequently means you are either eligible for a tuition credit or possibly your student has taxable scholarship income. 

If you claim the tuition credit, you do need to report that you got one or that you qualify for an exception (the TurboTax interview will handle this)

You claim the tuition credit, or report scholarship income, based on your own financial records, not the 1098-T.  If you find it easier, just change the numbers in boxes 1& 5 to what your records show. The 1098-T that you enter in TT is not sent to the IRS.

[Hal_Al · Accepted solution]

Instead of a screen  titled "Did (student's name) receive any of the following tax free benefits last year'  your screen might say "Did you receive a scholarship or grant"  (this appears to happen when box 5 is blank).  Answer yes and the pop up boxes will include one for employer-provided assistance. 

[Balgraf]

Thank you so much.