The education section of TT is under going a major overhaul. You may have to wait for the FEB 27 update to complete your taxes. In the mean time, you need to get a handle on your numbers.
By law your employer can only give you $5250 maximum, tax free tuition assistance.
If you got more than $5250, the amount above $5250 is usually already included in box 1 of your w-2 and you do not need to enter any additional income on your tax return.
But, since you have paid tax on that part, it is considered your after tax money and that amount can be used to claim the tuition credit. For tax purposes, it’s not really reimbursement, it’s your money.
So, did you really get $22,411 (5250 + 17,161) in tuition assistance? How much of that is included in the $64,743 shown in box 5 of the 1098-T? Some schools include employer assistance in box 5, some do not. You may have to make some adjustments to your 1098-T. You don't want to double report employer assistance and don't you want the tax paid portion treated as scholarship.
Scholarships that pay for qualified educational expenses (QEE - tuition, fees, books and other course materials) is tax free. Scholarship amounts that exceed QEE is taxable income, on the student’s tax return. Room & board are not QEE.
If box 5 of the 1098-T exceeds box 1, TurboTax (TT) will usually treat the difference as taxable income, unless you enter additional QEE at books and other expenses.
