ILLMAS Posted March 26, 2015 Report Share Posted March 26, 2015 If the employer paid for the student tuition and included it as part of their wages, can this amount be deducted under the tuition and deduction credit? For some reason I am thinking it would be double dipping, can someone confirm. Thanks MAS Quote Link to comment Share on other sites More sharing options...
Pacun Posted March 26, 2015 Report Share Posted March 26, 2015 Think about the pretax money as a scholarship and you will understand that you are not double dipping. So lets say that you go to school and the school gives you a scholarship for $5,600 but the total cost for the year was $12K, so you paid from your pocket $6,400... in this case, you will use $6400 for education credits. Same thing if your employer reimburses $5,600 pre-tax. So, ONLY the pretax is the amount that you cannot use to calculate the credit. Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted March 26, 2015 Report Share Posted March 26, 2015 If the employer paid for the student tuition and included it as part of their wages, can this amount be deducted under the tuition and deduction credit? For some reason I am thinking it would be double dipping, can someone confirm. Thanks MASDid the employer add the tuition in their wages not subject to FICA taxes? Were the amounts listed in box 14 of the W-2 or somewhere that validates the amount paid for tuition? I agree the taxability of the funds received is handled as a scholarship but I would like to know how it was reported before I determine what to do with it. Quote Link to comment Share on other sites More sharing options...
Pacun Posted March 26, 2015 Report Share Posted March 26, 2015 My employer reimburses me 7K, but the IRS has a limit to about $5,600, so my employer gives me the first 5,600 (as a scholarship), which is tax free and it is not mentioned on the W-2, the other $1,400 is added as salary to my W-2 and I get taxed. So If I pay for school $10K, I can use $4,400 for education credits. 1 Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted March 26, 2015 Author Report Share Posted March 26, 2015 18K was added to base salary 30K, the appropriate withholding (Fed, FICA etc...) were made, line 14 has the 18K as tuition. Quote Link to comment Share on other sites More sharing options...
Pacun Posted March 26, 2015 Report Share Posted March 26, 2015 (edited) Use whatever s/he paid to school to calculate the credit. You are not double dipping. If the employer only reimbursed him $18 (no freebie), and if you have other communication with the employer, you can suggest a win win situation by making a reimbursement plan that will allow the employer to deduct $5,600 for each employee that participates and will allow the employees $5,600 of tuition reimbursement tax free. Edited March 26, 2015 by Pacun Quote Link to comment Share on other sites More sharing options...
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