1098 T section of Turbo Tax

[ldawn513]

On this question:  What portion of Box 5 is from VA Benefits and/or Tax Free Employer provided assistance.?, do you enter just the tax free portion of the employer provided assistance or the entire amount of the employer provided assistance. Employer gave employee $10000 for education, but only $5250 is tax free. Also, the difference between the $5250 and the $10000 was not included on the employee's w2.

[AmeliesUncle]

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@ldawn513 wrote:

On this question:  What portion of Box 5 is from VA Benefits and/or Tax Free Employer provided assistance.?, do you enter just the tax free portion of the employer provided assistance or the entire amount of the employer provided assistance.

Also, the difference between the $5250 and the $10000 was not included on the employee's w2.

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You would only enter the tax-free portion.  However, the employer payment very well may not be on Box 5 of the 1098-T, so be sure you know how the college came up with the amount in Box 5.

Are you sure the W-2 does not show the other $4750 of payments for schooling?  If so, you may need to contact the employer for a corrected W-2.

[ldawn513]

Employer assistance was included on 1098T. And taxable portion was not included on W2. The school taxpayer attends is also the employer.

[Hal_Al]

It sounds like the excess (difference between $10,000 and $5250) is a tuition waiver or tuition remission.  That is treated as tax free.  Tuition waiver/remission is not treated as employer assistance, subject to the $5250 limit.  It closed akin to being a scholarship.   But, it should not have been included in box 1 of the 1098-T. 

Since it was tax free, you cannot claim a tuition credit on any of the  tuition paid.