Discussion:Anyone else get this on tuition reimbursement

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Discussion Forum Index --> Tax Questions --> Anyone else get this on tuition reimbursement

Z32 Twin Turbo (talk|edits) said:

2 February 2007

Ok there is a company in my area that is great about paying for college tuition for its employees. The delima is some of these people are claiming the tuition reimbursement as a Hope or Lifetime credit. They were told they could by a large tax preperation firm. We all know that tuition reimbursement is a wash type situation and cant be used. So my problem is, that every year the same people say "Joe Blow got to claim it why cant I". And I explain you paid for the tuition and got reimbursed for it. You are not out any money. I explain any loans or monies paid not reimbursed you can use. Maybe I should just tell them to go to big green and get them done.

Deback (talk\|edits) said:	February 2, 2007
If the tuition reimbursement is included in taxable wages on the W-2 form, then that amount can be used to claim a tuition credit or education expense.

Z32 Twin Turbo (talk\|edits) said:	2 February 2007
Not included :) Not over the $5250 allowance (anything over $5250 included as taxable income) Just annoying to have to exlpain it every year to same people.

JR1 (talk\|edits) said:	February 2, 2007
Maybe Deb is on to your way to explain it, that HRB's probably presuming that the tuition reimbursement was either not qualified or over limit, and therefore taxable in part or whole. And to the extent that it is taxable, then it qualifies for the usual credits. If it's already free, tho', there cannot be a double dip.

CATAXES (talk\|edits) said:	2 February 2007
You could mention that Joe Blow's preparer is wrong. That's why they need a good preparer like you.

Z32 Twin Turbo (talk\|edits) said:	2 February 2007
I mean your getting free schooling and you want more.

Death&Taxes (talk\|edits) said:	2 February 2007
This is a new one to add to a list that someone needs to compile titled: Everyone's Doing It So Why Can't I. We had police not paying SE Tax on second 1099 jobs, the firemen and their meals and what else?

Glmpllc (talk|edits) said:

2 February 2007

I had a client in the same situation, but with a twist. She prepared her own return...it was simple and she did it correctly. The IRS sent her a letter saying she didn't correctly report a rollover and that she did not qualify as head of household. I got involved and we provided the requisite documentation to support her return. The IRS accepted our documentation, then sent her a letter indicating they had adjusted her return because she didn't take a tuition deduction and they had a 1098-T on file. Her tuition was paid by her employer and not included in W-2 wages.

What would you have done?