Hal_Al
Level 15

Education

Q.  Should the amount above $5250 be taxed at my highest Federal Tax rate?

A.  Yes.

 

Q.  So, how do  I avoid taxes?

A. Since that  money was taxed  (the amount above $5250), it is considered your money and not employer tax free reimbursement. And it was used to pay qualified educational expenses (tuition & fees), so you may use that amount to calculate and claim a tuition credit.  You may not count the $5250 of tax free money to calculate the credit.