I am a full-time professor at a University in PA. Since Spring 2023, I have been using my employee benefit to pursue another master's degree. The university has already issued a 1098-T form, and its box 5 Scholarships or grants and box 1 are valued at the amount of tuition remission I obtained. However, my 2023 W-2 form doesn't include the tuition remission I received beyond $5,250. If my understanding is correct, the portion of graduate tuition remission is subject to federal tax.
I have already entered all the forms into Turbotax to prepare my 2023 tax return. I checked the box for free-employer-provided educational assistance and claimed $5,250. However, Turbotax still doesn't correctly reflect the amount of tax related to the tuition remission. How should I correctly report this and claim the $5,250 deductible by using Turbotax deluxe? As a PA resident, do I still need to pay state tax for the graduate tuition remission?
