Education Tuition

[S T]

Employee receives $ 3000 in Employer Reimbursement - Box 14

College 1098T and Transcripts paid show $ 6,400 plus additional books, supplies

Looks lifetime Learning Credit - so I would net the Tuition by the ER reimbursement after reducing for the books/supplies

ER reimbursement $ 3,000 apply first to books of approx $ 200 = $ 2,800

Tuition $ 6,400 less net ER reimbursement of 2,800 for lifetime learning credit amount of $3,600

Is my thinking correct?

Thanks

Sandy

[mactoolsix]

Employee receives $ 3000 in Employer Reimbursement - Box 14

College 1098T and Transcripts paid show $ 6,400 plus additional books, supplies

Looks lifetime Learning Credit - so I would net the Tuition by the ER reimbursement after reducing for the books/supplies

ER reimbursement $ 3,000 apply first to books of approx $ 200 = $ 2,800

Tuition $ 6,400 less net ER reimbursement of 2,800 for lifetime learning credit amount of $3,600

Is my thinking correct?

Thanks

Sandy

You forgot the LLC is 20% of the qualified expense (which is the tuition - ER reimbursement) 6,400 - 2,800 = 3,600 X 20% = 720 credit
Lifetime Learning Credit is 20% of the first $10,000 qualified expenses.

AOC is 100% of the first $2,000 + 25% of the next $2,000, for a maximum credit of $2,500 if you have $4,000 expenses.

Mike

[S T]

Yes I did forget the LLC at 20%, been a while since I have done one, but
I needed the math on the ER reimbursement to calculate the Ed Tuition, first
before the LLC credit % Was not sure if I could include the books and supplies from the ER reimbursement first.

As it turns out - Tuition and Fees Deduction will work just fine!

Does not qualify for AOC

Thanks for checking my math on the deductible amount with the employer reimbursement, before any percentages applied

Sandy