Education

Yes.

Since the education assistance was reported in Box 1 of your W-2, it is as if you were paid that 10,000, turned around and paid Michigan State University. 

It sounds like you were NOT pursuing a four year degree, so you would not be eligible for the American Opportunity Tax Credit, but you should be able to get the Lifetime Learning Credit.

I assume you did not get a 1098-T since the school may not think they are obligated to give you one (since the payments were made directly by Target) so you will need to contact the school or use your online school account to find the charges that were paid. You will also need the school's Employer Identification Number (EIN). 

The EIN for Michigan State University is 38-6005984

In TurboTax go to Deductions and Credits, Education, 1098-T

Select that you have a exception for not having a 1098-T

Enter your information on the 1098-T screen

DO NOT report the 10,000 as "employer assistance" if it was included in Box 1 of your W-2.

Please be aware, Target MAY HAVE paid 15,250 towards your education. 5,250 is allowed to be tax-free. You will need to know this when filling out the 1098-T screen. You can only use what you paid towards the credit. So, if the school says 15,250 was charged and paid in 2022, but you only had 10,000 added to your wages, you can only use 10,000 of the total expenses. 

If this is what Target did, the 5,520 tax-free assistance my be listed on your W-2 in Box 14 and TurboTax might carried that to the Education section. 

In other words, if MSU says they charged a total of 15,250 in 2022, and you only had 10,000 added to Box 1 on your W-2, make sure that 5,250 is subtracted from the total.

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