Q. My hospital paid me $5000.00 for nursing tuition I paid last year. Is that taxable for the year 2023?
A. Simple answer: No. There is nothing you need to report on your taxes.
But, it may depend on the details. Employers are allowed to reimburse employees for tuition, tax free, up to $5250, assuming the employer has a qualified tuition reimbursement plan. A hospital is a big enough entity, that their plan is probably qualified. They are allowed to reimburse you in 2023, for tuition paid, by you, in 2022 and the payment is still tax free. Since, they did not take out taxes, that's another indication that it's tax free. But, you may want to verify that with them.
Your next question might be: can I claim the tuition credit on my 2022 tax return. The answer is no, because you were reimbursed with tax free money. This is true, even if the reimbursement occurred in the following year.
