School via Employment

Bombchellz86

I’m wondering if I can use any credit/deductions for materials (laptops, supplies, etc) for school even if my job sent me to training and paid for the schooling. If I still had to buy all the necessary supplies how would I go about doing that?

Vidia

Hello Bombchellz86,

Generally, if those school expenses are paid by an employer with tax-free educational assistance under Section 127, these can't be claimed for a credit. Up to $5,250 can be excluded from your income to be tax-free. The IRS states that your employer should not include those benefits with your wages in Box 1 of your W-2. If you do have a 1098-T with education expenses exceeding what your employer paid, you may be able to claim a credit.

For purposes of any education credit or deduction, you'll need to reduce the education expenses that you paid by the amount of these tax-free education expenses paid by your employer. Here are steps on how to do so:

1. Open your account and then go to the Deductions/Credits menu. From the Common section, select College Tuition.
2. Indicate you have a 1098-T, enter student info, and enter school info. Right after the School Info you should be able to enter the 1098-T.
3. After you enter the 1098-T and continue, you will be asked if you had to pay for books or materials for school, and by clicking "Yes," you can enter those costs. If these costs were paid directly by you and not by the educational assistance from your employer, they can affect your education credits.
4. A couple screens after, you'll be asked whether you had employer-provided assistance, and you can enter the full amount your employer paid in that box. Our software will reduce your tuition by this amount.
5. Then, continue through the screens until you're informed whether an education credit can be claimed.

Generally, any supplies you bought only for your courses might qualify such as textbooks or equipment. A laptop which one keeps after their courses end and is used for personal reasons is not typically allowed as an educational expense. If you have more specific questions for your situation, please sign into your account and send a Support Center message or start a Live Chat.