Take the 2-minute tour ×
Personal Finance & Money Stack Exchange is a question and answer site for people who want to be financially literate. It's 100% free, no registration required.

I am almost done with my taxes, however I have reached one spot that I cannot figure out.

My 1098T shows my employer assistance credit as $4925. Also, my brother is using the assistance with a total of $5900.

How do I calculate the amount of employer tuition assistance included in taxable income? I am unsure because of this note in Turbotax: "Note:Employer tuition assistance up to $5,250 is usually not taxable. The employer should include any amount more than this as part of taxable income."

These are the options as far as I see them:

  1. My amount = $0 (less than $5250). My brother's amount = $650 ($5900 - $5250)
  2. My amount = $5575 (($4925 + $5900) - $5250). My brother's amount = $0 (Since it was through my assistance?)
  3. Something else?

This causes a $1000 swing in my refund, so I would like to make sure I get this right.

share|improve this question
    
Can you look at your last pay stub for the year? Many include not just the gross amounts but also the taxable amount. Is that number different than the W-2? –  mhoran_psprep Feb 6 '13 at 11:11
    
No, it just lists the gross amount –  Justin Pihony Feb 6 '13 at 14:43
add comment

1 Answer

up vote 0 down vote accepted

After talking with a tax representative it seems that this amount would be listed under box 14 of the W2, which is not in my case. So, I will fill in a 0.

share|improve this answer
add comment

Your Answer

 
discard

By posting your answer, you agree to the privacy policy and terms of service.

Not the answer you're looking for? Browse other questions tagged or ask your own question.