Education Expense

[ms681]

I was selected by my local ambulance provider to participate in a 2 year program to become an EMT.  They paid $3,500 to our local technical college and I attended classes for 12 weeks.  I signed a 2 year agreement and if I left within the 2 years, I had to pay the ambulance company back the $3,500.  After a year, I realized this was not for me and I left last year and paid the money back.  Since this was for education expenses, can I claim this on my return?

Thanks

[DawnC]

Yes, you can claim it, but it should be claimed on the tax return for the year the tuition was paid.   If you repay more than $3000 of wages in a subsequent year to when they were paid, you can take a deduction or credit called a claim of right.    However, if you repay tuition assistance, it is not subject to the deduction or claim of right since it is not a repayment of wages. 

But, the tuition is now eligible for education credits on an amended return.   You can amend your tax return for the year the tuition was paid to the technical college.   Only if the tuition was paid in 2021, could you can claim an education credit on this tax return.   But if it was in 2020 or before, you will need to amend that year's return in order to claim an education credit.  

How to amend (change or correct) a return you've already filed

What education tax credits are available?

[ms681]

Thanks Dawn.  Since my son didn't pay money directly to the local technical college but rather had to reimburse the local ambulance service, how is the entered into TurboxTax?  He didn't receive any 1099 or 1098 documents but does have an invoice from the ambulance service that indicates the reimbursement amount if for tuition assistance.

[ThomasM125]

You would have to make sure the school he studied at was an eligible educational institution. To qualify, the school would have to be eligible to participate in a student aid program run by the U.S. Department of Education.

You can use this link to look up the school to make sure it qualified:

LLC Eligible Educational Institution

[ms681]

Yes the school is qualified.  Therefore, since my re-imbursement payment was made to the ambulance service for tuition assistance to Tri-County Technical College, I am assuming I use the school for the tuition section within TurboTax filing which enables me to claim a 700 lifetime learning credit even though I didn't pay the school directly.  Thanks for all your help.