KrisD15
Expert Alumni

Education

YES

you must report employer assistance. 

If it was taxed, it would be included in your wages, Box 1 of your W-2, but that would be uncommon. 

 

If your employer provided education assistance (they can give up to 5,250 tax-free) that amount needs to be reported and subtracted from any expenses that would OTHERWISE be eligible to be applied towards an education credit. 

 

According to the IRS:

"You can’t use any of the tax-free education expenses paid for by your employer as the basis for any other deduction or credit, including the American opportunity credit and lifetime learning credit."

 

IRS PUB 970

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