# How do I tell if employer tuition assistance is included in taxable income?

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.

• 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? Feb 6 '13 at 11:11
• No, it just lists the gross amount Feb 6 '13 at 14:43