Washington State Labor and Industries-Job retraining

[Jhagglun]

Good afternoon,

I went to college in 2019, I was enrolled in May 2019 for the fall semester which started at the beginning of Aug 2019. I will be in college full-time this year 2020 and I am wondering how or if I should add any information to my taxes about it.

I have an amount that Labor and Industries will cover up to (18,660.46) over a two year period that covers any costs associated with retraining/college. Labor and Industries will either cover the cost of something or I am reimbursed for the expense. I have a few questions which are the following:

• Do I need to put this information somewhere on my taxes?
• How is that money is classified on my taxes if at all?
• Is it classified as financial aid?
• Do I qualify for any type of deductions being a student?
• Should I request a 1098-T form from my college? 

If you need any other information to answer the following questions, let me know.

Thanks,

Jonathan

[KrisD15 · Accepted solution]

In your situation, it depends on how the Labor Industry reports the payments. 

Normally an employer can pay up to $ 5,250 tuition and fees and the student does not claim that as income (therefore it is not taxed).

The expenses that this pays cannot be used for an education credit by you. 

If they are paying MORE than the 5,250, the amount over may be reported on your W-2. In that case, the expenses paid with these "now taxable" funds may be used by you as a credit. 

The main thing you need to know is- if the funds are taxed, you use the expenses. If they are not, you can't. 

There are no tax breaks "just " because you are a student, other than if you need to pay for childcare to attend class, you may be eligible to claim those expenses for the Child and Dependent Care Credit. 

CLICK HERE to read more about education credits