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Level 1
June 1, 2019
Solved

My wife received $2538 from her company for education reimbursement. Do I still report that though it is under $5250 explained in section 127

  • June 1, 2019
  • 1 reply
  • 10 views
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Best answer by ChristinaS

No, the fringe benefit would not be taxed, which means its not reported as income or listed as "nontaxable" income.

You do want to account for it with respect to education credits, however. The 1098-T won't reflect that the employer paid for school- but you need to ensure that you are not given a credit/ deduction for tax-free money. Turbo Tax asks about scholarships and tax-free assistance in the Education area. Just be sure to account for it there.

1 reply

Level 10
June 1, 2019

No, the fringe benefit would not be taxed, which means its not reported as income or listed as "nontaxable" income.

You do want to account for it with respect to education credits, however. The 1098-T won't reflect that the employer paid for school- but you need to ensure that you are not given a credit/ deduction for tax-free money. Turbo Tax asks about scholarships and tax-free assistance in the Education area. Just be sure to account for it there.