The Starbucks College Achievement Plan is structured as an employer education reimbursement.
As long as the amount was $5,250 or less in tax year 2024, it is not taxable, you needn't claim it on your Federal Return nor your State Return. You also cannot use the tuition paid with those funds towards an education credit.
So in your situation, if you have one Form 1098-T with 5,250 or less in Box 5 and a matching amount (of 5,250 or less) in Box 1, that 1098-T does not get entered into your TurboTax program. Keep your copy with your tax file.
(if it's over $5,250, you might need to claim income, but I am assuming they keep the yearly amount to the yearly IRS limit)
IF YOU HAVE OTHER EXPENSES, such as books and supplies, and you are working towards a degree, you do NOT need to separate the books and supplies that you purchased for the classes covered by your SCAP award from any other book or tuition expenses you had. You can add all those expenses up.
Remember that if anyone took the American Opportunity Tax Credit on your expenses in the past (such as your parents), those times count towards the limit of four times that the American Opportunity Tax Credit can be claimed. There is also the option of claiming the Lifetime Learning Credit.
According to the Starbucks College Achievement Plan:
"The Starbucks College Achievement Plan is a Qualified Education plan under Internal Revenue Code section
127. This means that the amount that Starbucks covers for your tuition and fees (Starbucks Tuition Benefit) is
tax free for federal income tax up to $5,250 per calendar year. If the annual tuition coverage exceeds $5,250,
the excess amount is reported as taxable income to partners and applicable federal taxes are required to be
paid by the partner."
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