Submitted By: someone
Answered: September 11, 2017 11:53 pm

I received a reimbursement of tuition that I previously paid. Is this taxable?

It depends on the source of the reimbursement.

  • If the school is reimbursing you for an overpayment because you received a scholarship or withdrew from a course, the payment isn’t taxable if it’s in the same year in which you made the payment. If you made the payment last year and took a tax break (tuition and fees deduction; education credit), you likely have to report income.
  • If the reimbursement was from an employer, determine whether it is from an education assistance plan that can be used for any type of education (which caps annual tax-free reimbursements at $5,250) or general reimbursement for job-related education, which is tax free with no dollar limit.
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Tax Glossary

Deductions

Items directly reducing income. Personal deductions such as for mortgage interest, state and local taxes, and charitable contributions are allowed only if deductions are itemized on Schedule A, but deductions such as for alimony, capital losses, moving expenses to a new job location, business losses, student loan interest, and IRA and Keogh deductions are deducted from gross income even if itemized deductions are not claimed.

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