trumpet365
Returning Member

Tuition reimbursement from employer- education tax credit

My school charges my student account and my employer directly makes the payment. My employer paid $9,000 for my tuition and books. My employer did a “tuition gross-up” to cover the taxes, so the amount paid by my employer was $13,000.

 

My employer added the $13,000 to my Box 1 on my W-2. Because the amount was added to my gross income, would I be able to claim the American Opportunity Tax Credit even though my employer covered the amount in taxes by doing a tuition gross-up? 

 

Thank you in advance!