Tuition reimbursement

[Jmar5]

I’m currently receiving tuition reimbursement from my company which is taxable past $5,000.The amount I receive is immediately taxed~ 30%. If I resign and have to pay a portion back, how do I take this income off my previous taxes and receive refund for money I paid taxes on that I returned to the company ?

[Loretta P]

Hello Jmar5,  

There is no deduction for the repayment of the employer paid tuition benefit in the year you repay it.  However when you received the tuition benefit, you were not able to claim the education credits on your return as they were not paid by you, but by your employer.  Once you repay the employer paid tuition benefit, the tuition would now be considered as paid by you.  You could amend the prior years covered by the tuition benefit to claim the education credits if you meet all the other eligibility requirements for the credit.