# Employer pays for my tuition (income tax question) **URL:** \ **Category:** Factual Questions\ **Created:** [March 31, 2015, 4:35am UTC](https://boards.straightdope.com/t/employer-pays-for-my-tuition-income-tax-question/716397 "2015-03-31T04:35:33Z")\ **Posts on this page:** 4\ **Page:** 1
**Author:** ![Velocity](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/velocity/32/18006_2.png) [@Velocity](https://boards.straightdope.com/u/Velocity)\ **Post date:** [March 31, 2015, 4:35am UTC](https://boards.straightdope.com/t/employer-pays-for-my-tuition-income-tax-question/716397/1 "2015-03-31T04:35:33Z")
If I understand correctly, you can receive up to $5,000 in employer-paid-for school tuition but may have to pay taxes on anything beyond $5,000. And then there’s something about whether it’s a “qualified” education reimbursement/employer-paid-for program or not qualified. I do not know whether this is a qualified program or not. Now, however, since the amount of tuition reimbursement I got last year (I received a Form 1098-T or some form like that) was less than $5,000 in any case, would this mean that it’s kind of irrelevant whether it was a “qualified” program or not, and I wouldn’t have to report the $5,000 regardless (it only matters for tax purposes, if $5k was exceeded, but makes no difference if it was less than $5k?) Yeah, I am a layman… ☹ This confuses me. ---
**Author:** ![dracoi](https://avatars.discourse-cdn.com/v4/letter/d/90db22/32.png) [@dracoi](https://boards.straightdope.com/u/dracoi)\ **Post date:** [March 31, 2015, 5:11am UTC](https://boards.straightdope.com/t/employer-pays-for-my-tuition-income-tax-question/716397/2 "2015-03-31T05:11:22Z")
Qualified tuition generally means classes eligible for college credit at an accredited US-based university eligible for federal financial aid. I’d have to check the fine print to see if it has a different definition as an employee benefit, but I think that’s probably the one in use. The qualified test would apply regardless of the amount reimbursed. If you got a 1098-T, that’s a good sign that the tuition was qualified. As for reporting income, it should have been done correctly at the employer level so that your W-2 will already show any taxable amounts. If the employer did something incorrectly, you’d want to first try to get them to fix the W-2 ---
**Author:** ![Velocity](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/velocity/32/18006_2.png) [@Velocity](https://boards.straightdope.com/u/Velocity)\ **Post date:** [March 31, 2015, 2:23pm UTC](https://boards.straightdope.com/t/employer-pays-for-my-tuition-income-tax-question/716397/3 "2015-03-31T14:23:36Z")
> [@dracoi](#): > > Qualified tuition generally means classes eligible for college credit at an accredited US-based university eligible for federal financial aid. I’d have to check the fine print to see if it has a different definition as an employee benefit, but I think that’s probably the one in use. The qualified test would apply regardless of the amount reimbursed. > > If you got a 1098-T, that’s a good sign that the tuition was qualified. > > As for reporting income, it should have been done correctly at the employer level so that your W-2 will already show any taxable amounts. If the employer did something incorrectly, you’d want to first try to get them to fix the W-2 OK, much thanks. What are the tax implications of reimbursed tuition? …I have to pay income taxes on it, right? ---
**Author:** ![BorgHunter](https://avatars.discourse-cdn.com/v4/letter/b/7c8e57/32.png) [@BorgHunter](https://boards.straightdope.com/u/BorgHunter)\ **Post date:** [March 31, 2015, 4:09pm UTC](https://boards.straightdope.com/t/employer-pays-for-my-tuition-income-tax-question/716397/4 "2015-03-31T16:09:19Z")
> [@Velocity](#): > > OK, much thanks. What are the tax implications of reimbursed tuition? …I have to pay income taxes on it, right? As long as it’s less than $5250 (for 2014), no, you do not include it as taxable income. See [Pub. 970, ch. 11](http://www.irs.gov/publications/p970/ch11.html). However, you can only claim a tuition deduction or tax credit on the portion of your tuition that your employer **didn’t** reimburse you for, if any.