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Returning Member
posted Apr 3, 2024 12:23:12 PM

Do we include 1098-T for amount reimbursed by employer?

For university courses I took this year, I paid tuition to the school directly, and then after completing the course, submitted grades and receipts and was fully reimbursed for that by my employer's tuition reimbursement program. I have a 1098-T form showing I paid this amount to the school in 2023.

I'm not sure if the reimbursement that I received was considered taxable income, or how this is supposed to be accounted for.  

Should I enter this 1098-T amount into Turbo Tax?  


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1 Replies
Expert Alumni
Apr 3, 2024 12:41:15 PM

You will enter the 1098-T into the system and take the deduction for the tuition paid.  You did pay it, after all, and you are entitled to all of the education credits that went with it.

 

Whether your tuition reimbursement is taxable to you or not is a trickier question.  It depends on how it was given to you and I recommend that you consult with your employer.  Most tuition reimbursement plans are fringe benefit programs and are not taxable to employees.  Some are reported on your W2 and you'll pay tax on them there.  Either way - if the payments are taxable then they will be reported to you in a way that makes that clear.

 

@taxpayer1234567