I am a Starbucks employee, tuition is paid. How much do I write in the box that asks what portion of box 5 is from my employer? Will this negatively affect my tax return?

[LinaJ2018]

Did you receive a Form 1098-T?  Are you referring to the 1098-T when you ask about box 5?

[ashlie1320]

Yes, I received the 1098-T, and am referring to box 5 in that form.

[LinaJ2018]

Are there any amounts in other boxes? Is your tuition is paid by your employment 100%?  Did you pay any out of pocket expenses?

[ashlie1320]

The only amount I paid out of pocket was reimbursed at the end of the semester. Box 1 also has an amount for payments received for qualified tuition and related expenses.

[LinaJ2018]

Please see answer below.

[ashlie1320]

Thank you so much!!!!

[LinaJ2018]

You are very welcome!

[LinaJ2018 · Accepted solution]

Basically, if you do not pay any out of pocket expenses, you do not qualify for an education credit. You only need to file the Form 1098-T if you are going to claim. If all your expenses are paid or reimbursed by your employer, you do not need to enter the Form 1098-T information.  There is no negative impact on your tax return, but save your effort entering the information.

[saraiappel]

SCAP (starbucks college achievement plan) Is paid for 100% but any tuition over $5250 per semester is taxed as income.

[Hal_Al]

If box 5 of the 1098-T included  scholarships other than the employer paid assistance/reimbursement, the answer may be different. 

[andboogie0416]

What about if you go above that 5250.00 and then they tax the taxes out on your checks.  Can you claim anything on the extra taxes that you paid in?

[Hal_Al]

Q. What about if you go above that 5250.00 and then they tax the taxes out on your checks.  Can you claim anything on the extra taxes that you paid in?

A. Yes.  You may use the amount above $5250 to claim the education credit.  That is you may treat that amount of tuition, as paid by you, not your employer, since that amount was taxable income to you.  Essentially, it was not reimbursement, it was additional salary, because it was taxed.  That's why the amount was included in box 1 o your W-2.