Education Assistance

[J Answers]

I'll use a hypothetical with hypothetical numbers. Let's say under Federal Wages is Gross Pay at $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?

[KrisD15]

In the example, if the 2,000 employer assistance is NOT included in TAXABLE W-2 Income (Box 1) then it must be added (reported) when filing out the Education Section if you are also applying for an education credit. 

So in other words, if you had 5,000 tuition expense, and are applying for a credit, you would need to report that 2,000 assistance which would leave 3,000 expenses that could be applied towards a credit. 

(There are additional computations, so the credit in this example would NOT be 3,000 but would be BASED on 3,000 of expense)  

[J Answers]

Would the $2,000 be considered "included" if it affected the Box 1 amount?

$10,000 (gross pay) - $2,000 (Less TuitnEdA) - $2,000 (benefit-related amounts)= $6,000 (Box 1 amount)

[KrisD15]

Are you referring to Box 1 on your W-2 or Box 1 on a 1098-T? 

If you are talking about Box 1 on your W-2, that reports TAXABLE income, so if your employer SUBTRACTED the 2,000 from your taxable income, you can't use the 2,000 expenses paid by that "Non-Taxable" income towards a credit. 

IF you are saying that Box 1 on your 1098-T was reduced for the employer assistance, no further adjustment would be needed.  

[J Answers]

Thank you!