tuition

[LBKtazz4182]

My wife is getting her Masters from Iowa State, her work is paying for it. When the statements come in from the school she just submits it to her work and then they issue payment to it, the only time we see on her records is on her W2 under box 14 "other" . question is do we still report this on our taxes since she isnt paying for it, I did enter it and now it wanting to give her a credit "Lifetime Learning Credit" . Do i go forward with this .

[RobertB4444 · Accepted solution]

If you received a form from the school showing the amount of tuition paid then your wife is indeed entitled to an education credit for going back to school regardless of how the tuition bill is getting paid.

Here is some info on thelifetime learning credit.

[LBKtazz4182]

Thank you very much for you answer a very big help and much appreciated. 

[Hal_Al]

Sorry, the other answer is fundamentally wrong (If you received a form from the school showing the amount of tuition paid then your wife is indeed entitled to an education credit for going back to school regardless of how the tuition bill is getting paid).

It does matter how the bill was paid.

But, you may still be able to claim a tuition credit. 

By law your employer can only give you $5250 maximum, tax free. If your tuition was less than that, and you employer reimbursed it all; then you cannot claim a tuition credit.  You do not even need to enter your 1098-T. You have nothing to claim.

 If you got more than $5250, the amount above $5250 is usually already included in box 1 of  your w-2. Since you have  paid tax on that part, it  is considered your after tax money and that amount can be used  to claim the tuition credit.