@Hal_Al —
Thank you for your help. Is it deductible because it appears on my W2 in box 1?
They also said this in response:
The was paid for at 100% by the university and none of the tuition expense were out-of-pocket. Therefore, you would not want to utilize the form (1098T) to claim it as a deduction.
“You will most likely receive a larger tax return when you file your Federal taxes since most employees are not in a 32.65% tax rate. The 32.65% is for Federal, Medicare, & Social Security taxes that are paid based on that additional income and what the university paid, and you refunded, is also added to your W2 in the appropriate boxes to ensure it is not paid for twice. They are not required to pay the state taxes the semester in which the courses are taken so that will often increase the State taxes an employee owes when they file.”
