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Returning Member
posted Mar 20, 2023 10:31:26 AM

FORM 1098-T

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????

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3 Replies
Expert Alumni
Mar 20, 2023 10:44:59 AM

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.

 

Returning Member
Mar 20, 2023 10:47:26 AM

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.

Expert Alumni
Mar 20, 2023 11:16:04 AM

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