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Discussion Forum Index --> Tax Questions --> Tuition reimbursement
Naejhcok (talk|edits) said:
| 24 February 2007
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| Hi, Client has qualified tuition expense for 2006. Client gets reimbursed on her w-2 for the tuition. My question is what happens when the expense is for 2006 but she doesn't get reimbursed until 2007? I understand that under normal circumstances with the tuition reimbursement being added to her w-2 that I would take the tuition expense on Sch a-misc deductions. Could I take the lifetime learning credit for 2006 (it is for graduate classes) Thank you
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Deback (talk|edits) said:
| February 24, 2007
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| You can take the Lifetime Learning Credit for 2006, in the year she paid the tuition.
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Death&Taxes (talk|edits) said:
| 25 February 2007
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| Agree with Deb IF the reimbursement is in her wages in Block 1, or will be in her wages, you can take the credit. Read Form 8863 instructions.
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Deback (talk|edits) said:
| February 25, 2007
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| This is one thing you have to watch out for. Box 5 of Form 1098-T for Scholarships and Grants might be the amount of tuition paid by the employer and included in taxable wages on the parent's W-2 form. This happens often with GM employees, and in this case, that amount doesn't need to be subtracted from the total tuition paid.
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