Do I get a deduction for repayment of employer tuition reimbursement?

[Mike42]

In 2016, I received tuition reimbursement from Employer A.  After terminating employment with Employer A in September 2016, I was asked to pay back a portion of what I had received in tuition reimbursement.  This portion was paid back in full in 2017.

Is there a spot on the 2017 tax return where I note this repayment to Employer A?  Do I get a credit or deduction for this?

[Opus 17]

Was the amount more or less than $3000.

[Mike42]

@Opus 17 thanks for replying.  Less than $3000.

[ashley05kuzma]

@Opus 17 What if it was more then $3000? Does that make a difference? So you're saying even if the tuition was repaid in 2017, the 2016 taxes need to be amended?

[Opus 17]

@ashley05kuzma 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."  If you repay tuition assistance, that is not subject to the deduction or claim of right since it is not a repayment of wages.  However, the rest of the answer -- that the tuition is now eligible for education credits on an amended return, still applies.

[ashley05kuzma]

@Opus 17 So you amend the 2016 return instead of claiming it as education expenses on the 2017 return, even though the tuition assistance was repaid in 2017, correct? Thanks for your help!

[Opus 17 · Accepted solution]

[Original answer removed this was not a repayment of salary but a repayment of a tuition benefit.]

New answer: You don't get any deduction or credit on your 2017 tax return.

However, back in 2016 you were not allowed to take any education credit, such as the Lifetime Learning credit, because your tuition was paid by someone else tax-free to you.  Now that your 2016 tuition is effectively being paid by you with taxable money, you can go back and try to amend your 2016 return to claim the education credits (if you meet all the other eligibility requirements of course).  You may also qualify for state tuition credits by amending your 2016 state tax return.  

[Mike42]

Thanks so much for taking the time to answer my question!  I appreciate your help.

[Opus 17]

My answer was wrong.  Please come back and read it again, I edited it to correct it but you probably won't automatically be notified.

[Mike42]

Gotcha - thanks again! I will look into this.

[mash107]

Does the employer have to provide you a revised W2?