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Level 2
March 20, 2023
Question

FORM 1098-T

  • March 20, 2023
  • 1 reply
  • 13 views

My employer paid ALL of my education expenses. Form 1098-T shows $12,000 in box 1 and $5000 in box 5. I paid NOTHING!  

Turbotax is giving me the Education Credits for American Opportunity  Credit.  

 

How can I get a credit if I paid NOTHING?   Then I read that you don't have to report the 1098-T if it is all payments made by scholarship or by employer. Is that accurate????

1 reply

Level 15
March 20, 2023

You can claim education credits if your employer paid all the tuition and you paid nothing out-of-pocket. So you do not report form 1098-T.

 

If you received $5,000 in scholarships and did not use them for tuition, then the scholarship is taxable to you.

 

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rsalciAuthor
Level 2
March 20, 2023

I think you meant to say "you CAN"T" claim education expenses if your employer paid all.

 

Right?  just a typo?  Otherwise I am still confused as heck.

Level 12
March 20, 2023

Correct, you can't claim education expenses that were paid for by your employer.  To be deductible, your expenses must be for education that:

 

  1. Maintains or improves skills needed in your present work
  2. Your employer or the law requires you to keep your present salary, status, or job.

For more information, see the link below:

 

Work-Related Education Expenses

 

@rsalci 

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