Education & Work-Related Expenses
Question: My employer reimbursed me for my graduate school tuition and included it on my W-2 as wages. The program improves skills needed in my current field of employment but doesn't qualify me for a new trade or business. Where can I claim this educational expense on my Form 1040?
Because your employer included your tuition reimbursement in your wages, you're treated as paying the tuition yourself out-of-pocket. To determine where to claim the educational expense, review all of the education credits and deductions available for the tax year.
Also review your eligibility for taking the expense as a miscellaneous itemized deduction on Schedule A (Form 1040), Itemized Deductions. When claiming the itemized deduction:
- You may need to attach Form 2106, Employee Business Expenses.
- Your deduction will be the amount by which your qualifying work-related education expenses plus other job and certain miscellaneous expenses is greater than 2% of your adjusted gross income (AGI).
- Tax Topic 513 - Work-Related Education Expenses
- Are Your Work-Related Educational Expenses Deductible?
- Publication 970, Tax Benefits for Education, Chapter 12
Category: Itemized Deductions, Standard Deduction
Subcategory: Education & Work-Related Expenses