What is in boxes 1 and 5 of your 1098-T?
In your statement " Taxes were taken out of my paycheck for the $14,750 (total-$5250) throughout the year", what does "(total-$5250)" mean? Is it just coincidental that the amount of withholding is exactly the same as the tax free portion of the tuition reimbursement.
What you describe is not "the way it is usually done". Universities (unlike other employers) are allowed to do tuition remission totally tax free.
I work for a private university and am also getting my MBA partime. In 2023 my classes totalled $20,000 that the tuition reimbursement plan covered. Taxes were taken out of my paycheck for the $14,750 (total-$5250) throughout the year. My W2 includes the added tuition as income and the taxes withheld. My 1099T does not reflect any of the tuition reimbursement amounts. Is there a way that the taxes I paid or the total tuition amount can be utilized for the Lifetime Learning Credit?
