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I paid tuition during 2012. My company reimbursed me for it in 2013. The reimbursement is not considered taxable income.

can I write off tuition I paid in 2012 in my tax return?

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bigshot82 said:   I paid tuition during 2012. My company reimbursed me for it in 2013. The reimbursement is not considered taxable income.

can I write off tuition I paid in 2012 in my tax return?

Please explain your thought process here. I'm interested.

IRS says you can deduct tuition up to $4000 a year. Does not say anything about reimbursement to the best of my knowledge. so I am wondering if it is a qualified expense or not

You cannot get double benefit of both tax free reimbursement as well as tax deduction from what you initially paid.

what if reimbursement were taxable income? (showing up in my 2013 W2)

bigshot82 said:   what if reimbursement were taxable income? (showing up in my 2013 W2)

In this case you could probably delay the tax payment to 2013 and take the deduction in 2012. In fact this might be what you have to do since the cost and reimursement occured in diff tax years.

IANYAccountant

In theory, you probably could but its a horrible idea. At best, you're going to end up with an interest free loan of $1000 for 1 year, at current interest rates, you might get $10 out of it. But, it could cause all sorts of problems. If you write it off in 2012, you're going to have to declare the income in 2013, which means it could be more taxes. Also, how are you writing off the tuition? As a business expense it is subject to a 2% AGI cap which means you will not see the full benefit of the tax write off and it'll actually eat up a heck of lot more than $10 loan. Put differently, you are turning a technicality into something of little value in exchange for a huge mess in the future. Why bother? If the company has already reimbursed you, its not taxable, just ignore the reimbursement and pay taxes as you would normally and don't write off the expense (you can't take the reimbursement *AND* write it off).

bigshot82 said:   what if reimbursement were taxable income? (showing up in my 2013 W2)
Your employer should be able to exclude up to $5250 in educational expenses toward your income each year.

Don't forget to look into deducting ALL you related school expenses. From the IRS:
Expenses that can be deducted include:
•Tuition, books, supplies, lab fees, and similar items
•Certain transportation and travel costs, and
•Other educational expenses, such as the cost of research and typing

Search for "IRS topic 513" for more details.

What was the purpose of the tuition? If you were furthering your career, and you had costs in excess of the reimbursement, you may be able to deduct these. However, it can't qualify you for a new career.

Example: a CPA going back to get a master's in taxation.
Not allowed example: a nurse going to medical school.

valueinvestor said:   What was the purpose of the tuition? If you were furthering your career, and you had costs in excess of the reimbursement, you may be able to deduct these. However, it can't qualify you for a new career.

Example: a CPA going back to get a master's in taxation.
Not allowed example: a nurse going to medical school.



are you saying tuition is only deductibe if it does not qualify you for a new career? I thought it would make the reimbursement amount non-taxable- but as far as amount in excess of reimbursement amount (out of pocket) I think I should be able to deduct regardless.



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