Education Credits

[Super Mom]

Please excuse my foggy brain, I've been working too much!!!! For the education credits, I always ask about any tax free assistance used to pay the tuition, today I happened to ask about reimbursement---was told yes and took off the credit. Then I started thinking, if the employer paid it wouldn't it be in wages and they can claim it?

[Super Mom]

I checked her W-2 and the difference in box 1 and box 3 is the amount shown to 401K Deferrals, so would the reimbursement be in box 1?

[Lion]

Probably not

Maybe, maybe not. Employers can reimburse education expenses up to some amount such as $5,250 under certain circumstances (no graduate school?) without having to report it as compensation.

[Super Mom]

Maybe, maybe not. Employers can reimburse education expenses up to some amount such as $5,250 under certain circumstances (no graduate school?) without having to report it as compensation.

OK, so I probably don't need to ammend this (already sent the e-file) should I worry about it?

[Burke]

Maybe not. If the employer reimbursed the tutition expenses under a non-taxable plan, then the TP certainly cannot take a credit (or deduction) for those same expenses, so if you took it off, okay. If he had excess expenses not covered by scholarships, grants or reimbursement by employer, the TP could have a tax write-off. Plans may differ from company to company and they may not reimburse at 100%.

[Super Mom]

Maybe not. If the employer reimbursed the tutition expenses under a non-taxable plan, then the TP certainly cannot take a credit (or deduction) for those same expenses, so if you took it off, okay. If he had excess expenses not covered by scholarships, grants or reimbursement by employer, the TP could have a tax write-off. Plans may differ from company to company and they may not reimburse at 100%.

So, should I find out from the payroll company, would it be on the W-2 anywhere? I should probably call the payroll comapany, I have a bad feeling about this one. Thanks for your time!

[Super Mom]

No luck contacting the payroll company. I checked the company's website and it says as a benefit tuition reimbursement up to 4,000 per year. Is it safe to assume that it's tax free?

HELP! I can't shake this eerie feeling on this tax return.

[Lion]

Yes

Unless the client knows differently. If it's a taxfree reimbursement, the employer probably never reported it to the payroll company, so they wouldn't know. But, payroll was probably told if it was taxable; and you know they don't know. Why are you obsessing? If you need some work, I have lots of returns you can prepare. Client told you she was reimbursed for education; website says company reimburses for education. Did she have qualified expenses OVER the $4,000? Then, maybe you could amend after tax season. Move on.

[Super Mom]

Unless the client knows differently. If it's a taxfree reimbursement, the employer probably never reported it to the payroll company, so they wouldn't know. But, payroll was probably told if it was taxable; and you know they don't know. Why are you obsessing? If you need some work, I have lots of returns you can prepare. Client told you she was reimbursed for education; website says company reimburses for education. Did she have qualified expenses OVER the $4,000? Then, maybe you could amend after tax season. Move on.

Thanks! I have enough work!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Need help with laundry!!!!!!!!!!!!!!

[Lion]

Laundry in previous post

Have you been with us on the previous post on laundry? I guess we all need help with laundry! Maybe, next year I can find an assistant for data entry and laundry, is that a good set of skills?

[Super Mom]

Yes I saw that, that's the reason for the comment, but oh so true!!!!!!!!!!