Paid tuition in 2009, I will be reimbursed in 2010

[SteveX]

What is the name of your state (only U.S. law)? CO

I paid for my tuition in 2009 but my employer will reimburse me in 2010. Can I claim it as a life time learning credit?

Thanks in advance.

 

[LdiJ]

What is the name of your state (only U.S. law)? CO

I paid for my tuition in 2009 but my employer will reimburse me in 2010. Can I claim it as a life time learning credit?

Thanks in advance.

Will the reimbursement from the employer be included as income in your 2010 W2? If it will, there would be no problem with you taking the credit. However, if the money your employer reimburses you is a non taxable reimbursement, then its similar to a scholarship or grant, and would become income if not used to cover qualified education expenses.

 

[SteveX]

LdiJ,

Thanks a bunch for the response. Based off of your reply, I would imagine that my company would file the paperwork as tuition reimbursement for 2009 for their tax purposes even though I was paid out in 2010? This is what makes sense. But then again the law does not have to make sense, the law only has to be followed.

 

[LdiJ]

LdiJ,

Thanks a bunch for the response. Based off of your reply, I would imagine that my company would file the paperwork as tuition reimbursement for 2009 for their tax purposes even though I was paid out in 2010? This is what makes sense. But then again the law does not have to make sense, the law only has to be followed.

Your company's books would reflect the payment as tuition reimbursement "due" as an accrued payable. However that wouldn't have anything to do with your personal tax situation.

Again, if the reimbursement is taxable income to you, then there is no problem taking the credit. Otherwise, there is a problem.

 

[SteveX]

LdiJ,

Thanks again for the reply, i appreciate your insights. The reimbursement is non-taxed but will it reflect a 2009 tax year "non-tax" or a 2010 tax year "non-tax"? I might have to ask our accounting department on this one. I will go beyond the $5250 (?) dollar limit non-tax tuition reimbursement this year and I suspect that my reimbursement for last year's tuition paid out this year will fall under the 2010, $5250 limit.