You'll need to sign in or create an account to connect with an expert.
Simple answer: do nothing. Do not even enter the 1098-T. You have nothing to report since your tuition was paid for by Tax free reimbursement ( a kind of scholarship).
That said, The first $5250 of employer educational assistance is usually tax free. If you got more, and paid tax on it (this should be reflected on your w-2) that part is considered your money and can be used to claim the tuition credit.
Furthermore, there is a tax loop hole available. You can claim the tuition credit on the first $5250, but then you have to report the reimbursement as income. Since the credit is worth 20% (for grad students), this may be advantageous if you are in the 12% tax bracket. It can get a little complicated reporting the 2019 reimbursement, as income.
Report the income on line 8 of form 1040 (schedule 1) as "Taxable Reimbursement". TurboTax can not automatically pull that from your w-2. You have to enter it manually. In TurboTax enter at::
Federal Taxes Tab
Wages and income
Scroll down to:
--less common income
---Misc Income, 1099-A, 1099-C..... (Press start)
----On the next screen, select Other reportable income
-----Two screens in, type Tuition reimbursement and the amount.
Simple answer: do nothing. Do not even enter the 1098-T. You have nothing to report since your tuition was paid for by Tax free reimbursement ( a kind of scholarship).
That said, The first $5250 of employer educational assistance is usually tax free. If you got more, and paid tax on it (this should be reflected on your w-2) that part is considered your money and can be used to claim the tuition credit.
Furthermore, there is a tax loop hole available. You can claim the tuition credit on the first $5250, but then you have to report the reimbursement as income. Since the credit is worth 20% (for grad students), this may be advantageous if you are in the 12% tax bracket. It can get a little complicated reporting the 2019 reimbursement, as income.
Report the income on line 8 of form 1040 (schedule 1) as "Taxable Reimbursement". TurboTax can not automatically pull that from your w-2. You have to enter it manually. In TurboTax enter at::
Federal Taxes Tab
Wages and income
Scroll down to:
--less common income
---Misc Income, 1099-A, 1099-C..... (Press start)
----On the next screen, select Other reportable income
-----Two screens in, type Tuition reimbursement and the amount.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
bgerry
Level 1
jamiemonroe3
New Member
schmatzaway
New Member
jbfloyd1
New Member
WPA
Returning Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.