Hal_Al
Level 15

Education

What you describe is highly unusual.  Your employer should have included the $4750 in box 1 of your W-2 and withheld FICA and income tax. 

 

You said "I guess $5250 of that tuition assistance is tax-free."  That may not be true. The fact that your employer is doing it wrong  indicates that he may not have set up a qualified educational assistance plan. In which case, the $5250 is not eligible for exclusion  The entire $10K may be taxable to you.  Try to get clarification from your employer. Reference: https://www.law.cornell.edu/uscode/text/26/127

 

Either way, enter as described by @SabrinaD2 .