pkwhat
Returning Member

Education

Al's question:

What does "the after-tax deductions ($5887 total) that were collected by my employer" mean? 

Answer:

$5887 is the total amount of after-tax deductions that my employer withheld from my paychecks in 2025.  They collected the taxes exceeding $5250 (max tax-free).  They prepaid my taxes every quarters and then collected these taxes back from my paychecks throughout the year.  BTW, $5887 is not itemized in W-2; it's the total after-tax deductions from all paychecks.

 

Al's question:

Is $5887 the amount of reimbursement over $5250?  Earlier you indicated the amount was $17,161. 

Answer:

No, $5887 is the total after-tax amount withheld from my paychecks (See above for explanation).

$17,161 is the "Tuition paid to school" that is included in Box 1 of W-2 (There is also Tuition Reimbursement = $643.7, but I don't understand what this is).  However,  Full Tuition = $31,743, that would indicate the taxable amount is 31,743 - 5250 = $26,493.  That's why I'm confused on whether to enter $17,161 or $26,493 into the place "Amount reported as income on a W-2".

 

 Al's question:

Did you get $22,411 (5250 + 17,161) in tuition assistance?  

Answer:

No, I got 31,743 from my employer.