Q. Since I paid for tuition in 2022 and they will be reimbursing me in 2023, do I include that reimbursed amount under the section for schooling?
A. Yes. Because the tuition paid is (or will be) fully covered by tax free reimbursement (less than $5250), you are not eligible for a Tuition credit on your 2022 tax return.
Since you are being reimbursed, you do not need to complete the education section or enter your 1098-T in TurboTax. But, if you do enter it, you need to enter the anticipated (tax free) reimbursement.
The 1098-T is only an informational document. The numbers on it are not required to be entered onto your tax return. However receipt of a 1098-T frequently means you are either eligible for a tuition credit or possibly the student has taxable scholarship income. Since you know, you have neither, you do not need to enter anything.
Q. Or should this amount be included on my 2023 taxes?
A. No. Even though it will be paid in 2023, it is not entered on your 2023 taxes because it is 1. tax free and 2. for 2022 expenses. It it was taxable reimbursement (over $5250) it would be handled differently.
