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.