KrisD15
Expert Alumni

Education

Your Tuition reimbursement was not taxed if it is not included in Box 1 of your W-2. 

No, you do not also deduct it from the social security wages and here's why-

 

When you get a tax-free benefit, it is "Income Tax-Free". 

The amount is included for Social Security purposes, because your employer needs to match the FICA tax and deposit those funds into your Social Security Account. 

 

If you had more than 5250 in education expenses, you can enter the 1098-T in order to use the excess towards an education credit, but you can only claim 5250 LESS than what was paid actually in 2022 by both you and your employer.

 

The employer payment is "INCOME TAX-FREE" for you, but the 5250 of expenses that your employer paid cannot be used by you towards a credit. The IRS feels they already are giving you a break on 5,250 by not charging income tax on that amount. 

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