I am a little bit confused on what amount to put in. Target paid $11,495. Target took the $5,250 free of tax, and added the rest $6,245 to my earnings on my paystub as a gross up.
My paystub says:
Tuition GU Offset $-6,245.00
Tuition Gross Up $ 8,877.04
It also says:
Earnings $2,632.04
If I am not wrong the $2,632.04 is the taxes due on the amount I had left to pay ($6,245.00), so they are adding the gross up to pay for those taxes, but I did not receive that money.
So I am confused on why do I have to pay taxes on money that was left to pay taxes? Sounds like taxes on taxes to me. Because it was not like they deposit that money in my account so when I had to pay my taxes I could use that money.
But regardless, what amount should I use when applying for the learning credit?
Again, thank you so so so much for your help.
