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Level 1

Solved

I received 5k from work for tuition reimbursement in Jan 2017 for Fall 2016 semester. I'll get 5K in May2017 for Spring. How do I report this?

Forum|Forum|7 years ago
June 7, 2019
1 reply
10 views

I'm a full time student in Massachusetts and I'm making $55,000 before taxes. The refunds I'm receiving are not taxed. I'm confused on what to do since my first refund was for 2016 semester..although I received the money in Jan 2017?

TurboTax Basic Mac

Best answer by

Amounts received by an employee under a written educational assistance plan are excluded from taxable income, up to $5,250 per year. It would appear that your employer has the intention to treat the payment you just received as a 2016 benefit and the payment in May as your 2017 benefit, both within the maximum for the respective year.

The amount received should not be included in Box 1 of Form W-2. Since the benefit is not taxed, you have no reporting obligation on your tax return.

For more information, please see IRS Pub. 970 Tax Benefits for Education.

A

Anonymous

Answer

Amounts received by an employee under a written educational assistance plan are excluded from taxable income, up to $5,250 per year. It would appear that your employer has the intention to treat the payment you just received as a 2016 benefit and the payment in May as your 2017 benefit, both within the maximum for the respective year.

The amount received should not be included in Box 1 of Form W-2. Since the benefit is not taxed, you have no reporting obligation on your tax return.

For more information, please see IRS Pub. 970 Tax Benefits for Education.

Level 2

What happens in this scenario if 529 funds were used up front to pay the tuition?