I am getting audited....yay!
So here is the situation
In 2010 I worked for mega corp that paid my tuition for a qualified master degree program.
Obviously I am not entitled to an education tax benefit, but wait there is more.
In December of that year I left the company for other opportunities and paid mega corp back the tuition money in January of the following year.
What is the proper tax treatment of this scenario? I claimed it on my 2010 year taxes even though I paid it off in 2011. I based this decision on the IRS's wording about education loans. IE you are entitled to the tax benefit when the tuition bill is paid not when the loan is repaid.
Thanks in advance for your help.