I've done some research and have yet to find the solution to my problem. I've read through Publication 970 a few times, and am still unsure what to do.

My employer paid the tuition costs through 2012 of $15,260 toward my degree, and the payments were made directly to the school. I received my 1098-T forms from the schools I attended, but I do not see anywhere on my W2 where my employer should have counted these costs.

My question then is this, when filling out the section for education assistance information on my taxes, I've reported what was on the 1098-T forms, but when it comes to reporting "Tax-free employer-provided education benefits" what do I report? Do I report the full amount ($15,260) that my employer paid directly to the school, do I report $10,010 (the amount after the $5,250 of tax free employer-provided education assistance allowed by PUB 970), or do I report nothing at all since it wasn't placed on my W2?


I'm sorry if this question has been answered and I missed it, I just do not want to make a mistake.

“My question then is this, when filling out the section for education assistance information on my taxes, I've reported what was on the 1098-T forms, but when it comes to reporting "Tax-free employer-provided education benefits" what do I report? “======>Educational expenses that are reimbursed cannot be included in the calculations for any additional tax deductions or credits, such as the lifetime learning credit or tuition and fees deduction.
“Do I report the full amount ($15,260) that my employer paid directly to the school, do I report $10,010 (the amount after the $5,250 of tax free employer-provided education assistance allowed by PUB 970), or do I report nothing at all since it wasn't placed on my W2?”========>I guess it depends on the situation; you may receive up to $5,250 in tax-free education benefits from yourER each year. The payments do not have to be for work-related courses. If your ER pays for more than $5,250 of education benefits for you during the year, you must generally pay tax on the amount over $5,250. As of 2010, reimbursement up to $5,250 is not taxable. In addition, amounts over the limit are not taxable if they are specifically related to your employer's business operations. These amounts are not part of your wages and will not appear as taxable income on your W-2 form.