If it shows up on the W-2 then it would count towards my taxes for the year, correct? Correct
My main questions:
- What are the conditions under which a sponsorship doesn't have a tax impact if the amount of the sponsorship is over $5250? As posted already ... anything over $5250 in one tax year is added to your wages if the employer does it correctly.
- If this sponsorship requires a 100% payback to the employer if I leave before the contract term, then I would've paid taxes on the sponsored amount and I would need to pay back the gross amount to the employer. Is my understanding correct? Do I have any option to recoup the taxes paid in such a scenario? Until the amount is forfeited you have paid no taxes on the amount that was free thru the employer plan however if you do have to pay it back you can amend your prior year return to take advantage of the education credits.
