Tax question about tuition?

Opeth

Original poster
Member
Mar 25, 2012
177
So I went to a vocational school for my job at a cost of $4795. I have a signed "Tuition loan agreement" saying my company will pay $4600 of my tuition. The loan will be forgiven on a prorate basis every week over a period of three years. If I fail to complete the school, complete training or leave my employment before three years I agree to reimburse my employer. On the schools 1098-t they wrote the $4600 as a grant/ tuition which a screws me out of a ton of money since this is not a grant or scholarship.

I have the option to use the 1098-t and leave the grants/ scholarship section blank with this document as proof of it being a loan or say I never received one from the school.

Opinions?
 

meerschm

Member
Aug 26, 2012
1,079
Not sure this is the best venue to ask for tax advice.

but it sounds like you think you have an option to cheat on your taxes.

from an IRS site:

Tax Topics - Topic 457 Tuition and Fees Deduction

"You cannot claim a deduction or credit based on expenses paid with....... employer-provided education assistance."

it looks to me like they are paying for your school, (except for $175 which you could deduct), but had you sign a loan in case you leave the job in less than three years.



follow up question, if you think you should be entitled to the deduction for this money you did not spend, should you also pay income tax on the loan forgiveness?
 

The_Roadie

Lifetime VIP Donor
Member
Nov 19, 2011
9,957
Portland, OR
How did it screw you out of a ton of money? Would the school have given you a discount/scholarship if they weren't getting paid from your employer?

Saying you didn't get a form doesn't change the fact that the IRS probably already has an electronic copy directly from the school with your SSN on it. Same reason nobody can "forget" to include all their income if it was reported on a W2.
 

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