Education Assistance

[J Answers]

Hi, 

Employer provided tuition reimbursement for Spring 2022: $2,087 

Listed in the W-2 as Less TuitnEdA (deduction under Federal Wages), influencing the W2 Wages total 

1098-T form includes Spring 2022 (tuition reimbursed) and Fall 2022 (not tuition reimbursed) total

In the section that says, Employer-Provided Assistance (if a student  paid for these expenses and was reimbursed by an employer, enter that reimbursement amount not already listed on a 1098-T, W-2 or other tax form), is this left blank because of how the tuition reimbursement was calculated in the W-2?

Thank you.

[MaryK4]

Yes- because the employer education benefits are included on your W2 you do not want to include them again.

[J Answers]

Okay, wanted to make sure because in that section on the W-2, it starts with Federal Wages, then the other line is Gross Pay, and then all these deductions (including the Less TuitnEdA) to calculate the W2 Wages total. 

So, it is not necessary to list it in the Employer-Provided Assistance?

Thank you!

[Hal_Al]

In your  statement, "Listed in the W-2 as Less TuitnEdA (deduction under Federal Wages), influencing the W2 Wages total",  it is not clear that the $2087 was actually included in box 1 of your W-2 (as opposed to being somewhere else (usually box 14 or box 12). 

The first $5250 of employer provided tuition is usually tax free and not included in box 1.

So, if the $2087 is in box 1, was there another $5250 that was not in box 1.  If, so that would have to be accounted for in the Employer-Provided Assistance section of TT. 

[J Answers]

I'll use a hypothetical with hypothetical numbers. Let's say Gross Pay is $10,000, under that is LessTuitnEdA as $2,000 (for example purposes), and then other benefit-related deductions. The calculation totals to the W2 Wages as $6,000 (Box 1). That is it. 

So, the tuition reimbursement is in this calculation. Does the Employer-Provided Assistance need the $2,000 or just left blank?

[Vanessa A]

The employer provided education assistance that is tax free would only show in box 12.  There is no other place you will see this or enter this other than the education section of TurboTax. 

[Hal_Al]

I'll use a hypothetical with hypothetical numbers. Let's say Gross Pay is $10,000, under that is LessTuitnEdA as $2,000 (for example purposes), and then other benefit-related deductions. The calculation totals to the W2 Wages as $6,000 (Box 1). That is it. 

That's very unclear. You seem to be quoting a pay stub rather that a W-2.  But.  based on that:

Q. So, the tuition reimbursement is in this calculation. Does the Employer-Provided Assistance need the $2,000 or just left blank?

A. Enter the $2000 as Employer-Provided Assistance. It was not included in box 1 of your W-2 as taxable income. 

It is unlikely that an employer sophisticated enough to have a tuition assistance benefit would mistakenly put the tax free part (first up to $5250) in box 1 of the W-2.