Who reports a dependent's employer-provided tuition assistance reimbursement?

CSWolf — Fri, 04 Apr 2025 18:48:29 GMT

Do we or our dependent student report the employer-provided tuition assistance that she received from her employer? It shows up on a paystub but not on her W2. She received the money. She pays her tuition, and we pay for everything else.

We understand we report the 1098-T.

Re: Who reports a dependent's employer-provided tuition assistance reimbursement?

MarilynG1 — Fri, 04 Apr 2025 19:10:50 GMT

If your student is claimed as your Dependent, you claim her education expenses on your return, no matter who paid them, so enter the entire tuition amount paid.

In the 1098-T section, you'll be asked about employer benefits received.

Depending on the amount of assistance her employer gave her, the first $5250 is non-taxable. The balance of that (if there was one) would be included in Box 1 Wages on her W-2. If she was taxed on a balance over $5250, enter only $5250 as employer received benefits, since tax was already paid on the balance.

The amount qualifying for an Education Credit, would be the tuition amount, less scholarships/grants in Box 5 of the 1098-T, less employer assistance,

Here's more info on Employer Education Assistance and Education Credits.

@CSWolf

topic Who reports a dependent's employer-provided tuition assistance reimbursement? in Education

Who reports a dependent's employer-provided tuition assistance reimbursement?

Re: Who reports a dependent's employer-provided tuition assistance reimbursement?