I was wondering if someone could explain how to denote received tuition reimbursement funds based on the following circumstances:
An employer provides $6,500 in a tax year to an employee in tuition reimbursement funds:
- $3,500 is directly deposited into a bank account (from fund A) - it is not taxed.
- $3,000 appears on a paystub (from fund B). It does not appear from the pay-stub that the $3,000 was taxed, as the "total taxes" field falls in the same ballpark as previous stubs despite the addition of $3,000 in [bi-monthly] pay.
Did the employer account for the surplus amount over the $5,250 maximum in box 1 of the W2? It seems to me that they did not, because the FED TAXABLE GROSS amount on the last pay-stub of 2019 = the amount listed in box 1 of the W2. I was expecting box 1 to be $1,250 (6500-5250) higher than FED TAXABLE GROSS.
Am I correct in assuming that the employer only factored in the $3,000 that appeared on the pay-stub, which, because it falls under $5,250, would not change the amount listed in box 1?
If so, how would this be properly documented on a return in TurboTax?
Thanks in advance!
