topic My tuition reimbursement was not taxed but it was included in my gross income on my W-2. Can I enter my 1098T to earn the lifetime learning credit? in Education

My tuition reimbursement was not taxed but it was included in my gross income on my W-2. Can I enter my 1098T to earn the lifetime learning credit?

ucansee15 — Mon, 23 Feb 2026 13:15:57 GMT

Do I need to deduct the $5250 from the Wages, tips, other comp. - social security wages - and the Medicare wages and tips? Or would I just enter the 1098-T form in the education section and not notate any employee reimbursements since the $5250 was added to my gross pay in my W-2 (this amount was not taxed, so my federal income tax withheld does not include $5250 of my gross pay).

Re: My tuition reimbursement was not taxed but it was included in my gross income on my W-2. Can ...

KrisD15 — Mon, 06 Feb 2023 01:39:23 GMT

Your Tuition reimbursement was not taxed if it is not included in Box 1 of your W-2.

No, you do not also deduct it from the social security wages and here's why-

When you get a tax-free benefit, it is "Income Tax-Free".

The amount is included for Social Security purposes, because your employer needs to match the FICA tax and deposit those funds into your Social Security Account.

If you had more than 5250 in education expenses, you can enter the 1098-T in order to use the excess towards an education credit, but you can only claim 5250 LESS than what was paid actually in 2022 by both you and your employer.

The employer payment is "INCOME TAX-FREE" for you, but the 5250 of expenses that your employer paid cannot be used by you towards a credit. The IRS feels they already are giving you a break on 5,250 by not charging income tax on that amount.

Re: My tuition reimbursement was not taxed but it was included in my gross income on my W-2. Can I enter my 1098T to earn the lifetime learning credit?

Hal_Al — Mon, 06 Feb 2023 01:48:34 GMT

"My tuition reimbursement was not taxed but it was included in my gross income on my W-2".

Those two statements are contradictory. All money in box 1 of your W-2 is (or will be) "taxed", because it goes on your form 1040 as income. I assume you mean there was no withholding done for that amount.

You are not allowed to deduct $5250. If $5250 of tax free money was included in box1, of your W-2, you need to ask your employer for a corrected W-2.

Q. Or would I just enter the 1098-T form in the education section and not notate any employee reimbursements since the $5250 was added to my gross pay in my W-2?

A. Maybe. Yes, if none of the employer reimbursement was tax free. But, first verify with your employer that $5250 is supposed to be tax free. Not all employer plans qualify for tax free treatment (most do). If it does qualify, a corrected W-2 is the only remedy.