scenario: A person pays tuition bills directly to the school and is reimbursed by the company thru their W-2 payroll. They notice it's not fair because the W-2 reimbursement is taxed and doesn't fully compensate for the tuition payments to the school. Can they claim this difference as an unreimbursed employee expense on Sch. A on the
If the reimbursement is via payroll, I would claim the entire education expense, subject to the various rules covering education deductions and credits.
Ira Smilovitz Leonia, NJ
expense, subject to the various rules covering education deductions and credits.
I recommend reading Pub 970. Ch 11 specifically state that amounts up to $5250 should not appear on your W2. The employer may be mishandling this.
No, it is not an unreimbursed employee business expense. Assuming that the employer does not have a formal written education assistance program for employees, the amount reflected in Box 1 of the W-2 is correct. The tuition paid can be treated as a qualifying higher education expense (I assumed we were dealing with a college or university.) for purposes of either a deduction or credit. See IRS Pub 970 for more details.
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