Hal_Al
Level 15

Education

 

You have a choice (actually a tax loop hole). You can claim nothing on your 2019 tax return, since it will be reimbursed in 2020. Or, you can claim a tuition credit, because you are out-of-pocket. But, then you will have to report the reimbursement as taxable income on you 2020. return

 

It may get a little complicated reporting the 2020 reimbursement  next year, since your employer ill treat it as tax free (up t $5250). See below for how to do it.  Since the American Opportunity Credit is so generous (100% on the first $2000, 25% on the next $2000), you will come out ahead by claiming it (up to $4000).

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. In TurboTax enter at::

 

Federal Taxes Tab

 

Wages and income

 

Scroll down to:

 

--less common income

 

---Misc Income, 1099-A, 1099-C..... (Press start)

 

----On the next screen, select Other reportable income

 

-----Two screens in, type Prior year Tuition reimbursement  and the amount (not more than $4000).