Let’s say you work for two different employers during the year. Employer 1 pays you $5250 in tuition reimbursement. You leave that job halfway through the year and start a new job with employer 2. Employer 1 does not claw back the reimbursement. Employer 2 then pays you $5250 in tuition reimbursement for the next semester. I would assume neither of these employers would report the amount in box 1 of your W-2 since they don’t know what the other employer paid. At the end of the year how does the IRS know you received more than $5250? How do you declare one of the reimbursements as income and pay the tax?
