What should I do if my total tuition assistance exceeds $5250 but it isn't reflected on my W2?

[Dayna]

I changed employers this year. Both of my employers paid tuition assistance of about $5000. In total, this exceeds the maximum non-taxable amount of $5,250, but neither included the excess assistance on my W2. Do I need to report the extra tuition assistance? Where do I report it?

[KrisD15 · Accepted solution]

No, the limit is 5,250 per employer. 

There is no income to report unless you received more than your education expense for 2019.

You cannot use the expenses towards a credit. 

If you received more than the education expenses you paid, report the excess as Other Income. 

Employer Tuition Assistance

[Hal_Al]

You are only allowed $5250 of employer reimbursement, tax free. Any excess due to multiple employers is taxable to you.  Enter as Other income, if it is not included on your W-2. 

Under IRC Section 127: "If the employee has multiple employers, the benefit cannot exceed $5,250 per calendar year for all employers combined."  Reference: https://www.connectyourcare.com/blog/tuition-reimbursement-benefits-employers/

“this section would exclude from gross income more than $5,250 of educational assistance furnished to an individual” https://www.law.cornell.edu/uscode/text/26/127

In TurboTax (TT), enter at:
- Federal Taxes tab (Personal in  Home & Business)

 - Wages & Income

Scroll down to:

-Less Common Income

      -Misc Income, 1099-A, 1099-C

       - On the next screen, choose – Other reportable income  

       - On the next screen, click yes

       - On the next screen, you'll get blanks to enter the amount and a description. It will go on line 8 of Schedule 1 as "Other Income"

Because you have now paid some of your tuition with "after tax money", you are eligible to claim a tuition credit for that amount.