Your Life

Your Life

Major life milestones often have a major tax impact. Changes in your marital status, having a baby or adopting a child can have significant impact on your taxes. This is the place to ask questions about dependents, real estate, and other various scenarios that play a significant role in what taxes you pay.

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Pioneer
Posts: 1
Registered: ‎03-19-2014

Tuition Deduction paid by the employer

I am studying my Master's Degree and my employeer (school district) is paying  the tuition. I have the form 1098-T, my questions is can I claim the tuition expenses even if my employeer paid the tuition?

 

Thank you,

Associate (Council Member)
Posts: 539
Registered: ‎01-20-2014

Re: Tuition Deduction paid by the employer

Generally, if you have an employer paying the tuition, then it is considered a fringe benefit.

 

Fringe benefits are tax-free. If that's how your tuition was paid, you'd have to reduce the amount paid to the school by the amount the employer paid for tuition to calculate the education credit.

 

You can't double-dip.

 

For more information, you can check out publication 970 for how education credits work.

 

http://www.irs.gov/pub/irs-pdf/p970.pdf

 

There are also tax professionals who do many education returns and who could talk with you and make sure you've got everything right for filing.

 

 

Tax Specialist I and Brevet Assistant Manager, Downtown Plaza H&R Block
All tax advice is general. Please consult with a tax pro to receive advice specific to your tax situation.