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My 17 year old daughter is starting college next fall. My employer offers $6,000 tuition reimbursement which is taxed through my paycheck for dependents. My daughter also works and her employer offers her $5,250 tuition reimbursement which is tax-free. Can my daughter claim both reimbursements?
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Yes. There is no problem for her having both.
Q. Can my daughter claim both reimbursements?
A. Yes, as far as the IRS is concerned. But, you may want to check with both employers to be sure they don't have a rule against double dipping
As to the tax rules, she could claim both, even if your employer's plan was tax free (only $5250 is allowed to be tax free). But, since your employer's $6,000 tuition reimbursement is taxed through your paycheck, it is not actually treated as tuition reimbursement, for tax filing purposes. It is simply additional taxable income (a taxable benefit), to you, since it will be included in box 1 of your W-2.
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