Hi,
I work for a hospital that a few years ago split off as a separate company from a University. As part of the split from the University, tuition benefits were carried over to the new Hospital company. As the parent of a college child I get this "tuition" benefit from my Hospital employer. The amount paid by my employer to the college via a third party is correctly added to my income and shows on my W2. As stated, this was all part of the negotiations when the hospital split off from the university. The amount in box 5 on the 1098T from the college includes the amount my employer paid to them via a 3rd party. Yet this amount is already included as income on my W2. According box 5 exceeds box 2 and I do not get any education credit on my return. The college (and may other colleges attended by other employee children) is reporting the 3rd party payment as a scholarship/grant. I understand this is how they are interpreting the 1098T wording. But these amounts are already included as income on my W2. Had I paid the college myself rather than my employer using a 3rd party, then the college would not classify this money as a scholarship/grant.
Do you have any advise on what/how I should legally fill out the 1098T information in order to get the IRS education credit?
Thanks,
"Taxpayer"
