My W-2 incorrectly lists $2,250 of taxable income for tuition reimbursement which should have been classified as a non-taxable fringe benefit. How do I fix this?

If you believe the employer prepared your W-2 incorrectly you have to talk to the employer.  The W-2 you have is the one the employer reported to the IRS so you cannot change it yourself.  if something is wrong, the employer can provide a corrected W-2 called a W-2C.  Do not e-file until you sort this out with the employer.

I contacted my employer and they stated that I filled out the IRS tuition reimbursement questionnaire incorrectly which caused the taxes to be assessed.  The HR representative that I spoke with said that they cannot change the answers to my IRS questionnaire and mentioned that I need to work with a tax professional in order to sort this out.

What would be the next step in this case?

Unfortunately, your best option is to see if you qualify for tone of the Education Credits or Tuition deduction.  Since the money is now taxed, you can use it for these.  

@nickfuzer

Hi! @nickfuzer were you able to fix this problem?

I'm in the same situation, my HR told me they can't fix the answer so I had to pay all the taxex for this year (almost 10K!) Trying to figure out how to get tax refund for this. 

I'd appreciate your answer and update!

Assuming you are correct in your assessment of the situation, you need a revised tax return Form 1040 that shows the correct results, including attached forms and schedules.

you also need a copy of the tax return you filed with its attached forms and schedules.

Use Form 1040-X to submit new or changed information on an already submitted tax return.

@fanfare Hi, thanks for the reply.

This happened this year, 2021 so haven't file the tax return yet. Trying to figure out what to do when I file the tax return next year! 

How can the nonexistent W-2 for 2021 possibly be incorrect ?   Have the employer report the non taxable tuition correctly to begin with ... talk to them now. 

This is what happens when you piggy-back on an old thread (same situation) with no details of your own,

but your situation is really not the same.

Confusion.

@fanfare I just couldn't find information about this. i know every case is different. thanks for the reply tho

@Critter-3 I just wanted to be prepared if they don't fix this year and get the incorrect w-2 form. thanks

BE PROACTIVE ... the employer should explain what is taxable and non taxable and how it will or will not be reported on the W-2 form next January.  It is better it is done correctly to begin with instead of scrambling later to fix it.