It’s tax time, and I’m trying to get all my things in order to maximize my refund. (Aren’t we all?) My wife and I are in both in school, but under different circumstances. I’m going to grad school and my employer is paying for it. My wife is going for a second BS, and we’re paying for that ourselves.
I’ve already taken the taken the Lifetime Learning Credit for my wife, and it’s maxed out. Talk about a boost to the refund!
Now, my grad school sent me a 1098-T. I’ve got $6000 or so in qualified education expenses according to them. But I don’t pay the bill, my employer does. So my first thought was, “I can’t take any of this.” If I don’t pay for it, I can’t claim it, right? Case closed…done deal. Expenses have to be reduced by tax-free assistance, and I figure that handing the bill over to my employer falls under that category.
But then something dawned on me, and is the focus of my question. My class time results in an obligation to work the money off. I incur a commitment for the classes that are paid for. So I’m not paying for the classes with money, but with time. That may mean it’s not really “tax-free assistance” after all. I know it’s a stretch…but could it be that I can claim these expenses?
I could, of course, only use these for an additional deduction since no more credits can be claimed, but it’ll help a little. I’m not trying to get anything I don’t deserve, but want to make sure I get everything I do deserve.