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10-11-2017 07:38 PM
Received a form CP2000 wanting to validate my 2015 tuition expense vs. tuition billed. I do not have a problem with this as I did not receive any scholarships, grants, etc. That being said, in previous tax years (2013 and 2014) my employer paid some of my tuition. I left that employer in 2015 and had to pay them back with post-tax income in 2015. Does the expense that I paid my employer to reimburse them for tuition they previously paid on my behalf count as tuition payment in tax year 2015? I am inclined to believe that it would as loans are considered valid tuition expenses. I did NOT claim it on my 2015 taxes, but wonder if I should have.
Obviously in tax years 2014 and 2013, I could not claim the original amount that my employer paid tax free.
Thanks for any advice you may have.
10-11-2017 10:44 PM
You are correct. Any tuition that you had to repay out-of-pocket is eligible for the Lifetime Learning Credit for the year in which it was originally paid to your educational institution. In other words, you can go back and amend your return to include the additional amount of qualifying expense in your calculation of the credit. Any amount that your employer paid for you tax-free that you did not have to repay is not eligible for the LLC or any other education benefit.
You can still get an additional refund for 2015 if that would be the result of your amendment.
If you have any other questions I'll be glad to help.
Senior Tax Advisor (Tampa, FL)