KrisD15
Expert Alumni

Education

In your situation, it depends on how the Labor Industry reports the payments. 

Normally an employer can pay up to $ 5,250 tuition and fees and the student does not claim that as income (therefore it is not taxed).

The expenses that this pays cannot be used for an education credit by you. 

 

If they are paying MORE than the 5,250, the amount over may be reported on your W-2. In that case, the expenses paid with these "now taxable" funds may be used by you as a credit. 

 

The main thing you need to know is- if the funds are taxed, you use the expenses. If they are not, you can't. 

 

There are no tax breaks "just " because you are a student, other than if you need to pay for childcare to attend class, you may be eligible to claim those expenses for the Child and Dependent Care Credit. 

 

CLICK HERE to read more about education credits

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