I have a client who received a 1098T for eductuation expenses. His company reimburses 10,000 for eduction. The client told me that 5,000 of that gets included in income. The actual amount on the 1098T is 10,260. I'm thinking that he is entitled to taking 5,260 towards education credits. I'm concerned though about the amount I'm taking towards the credit not matching the 1098T. Am I on the right track with my thinking? Thanks in advance for any answers.
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The 5000 included in wages
is probably correct, there is a limit on how much an employer can give as a fringe benefit.
If it was included in wages then it is eligible for the credit.
But the fact is that the amount shown for the credit never matches the 1098T. The max used for the AOC is 4000 and if you are under $4000 you can add books, etc. I don't agree with the ones that say that the 1098 T is worthless, we use them most of the time, but they do not show the entire picture.AJ, EA
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