You can claim Education Credits as long as you are enrolled at least half time as a student.
You cannot claim any of the education expenses that are reimbursed by your employer, unless they are reimbursing more than $5,250 or including it as taxable income on your W-2. If they are not including it as taxable income, then you are already getting a tax break by not having this income taxed, so you cannot take an additional credit for the education expenses.
If they are giving you more than $5,250 and the education you are getting is directly for the betterment at the job you are doing, then this would still not be taxable income so you would still not be able to claim that amount for educational credits. If the amount over $5,250 is not for the betterment of the job you are performing for them, then you would be able to use that amount towards education credits.
If your employer is covering all of your costs and you do not qualify for a credit, you do not need to enter your 1098-T on your return.
If your employer is not covering all of your costs and you do qualify for education credits, you can enter the 1098-T by selecting the following:
- Federal
- Deductions and Credits
- Expenses and Scholarships (Form 1098-T)
If you are unsure if you should enter the 1098-T or not, you can choose to enter it, and then answer all of the questions saying yes to employer assistance provided, then walk through the steps and TurboTax will determine if you qualify for any education credits.
(Edited 2/18/24 @ 7:15PM PST)
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