Hello,

I am hoping someone on here can help me with a tax issue I am having. I worked for a financial planner for a few months in 2013. It was my first job in finance and the employer paid for me to get my Series 7 and 66. I had received my CFP on my own before I entered the industry. I left that position later in 2013 because I received an offer in another financial planning firm with more mentoring and money. My old boss was rightfully angry and I felt bad leaving, but, ever since I left in July '13, he has been trying to get back at me for quitting. Without getting into the drama-side of things, I am looking for help on the following tax issue:

My boss followed through on his promise, made in an email after I left, that he would issue me a 1099-MISC for the education expenses he paid for my series 7 and 66 classes and test and I want to make sure that this is the correct way to deal with this tax issue before I file. I was a W-2 employee and received a W-2 in the amount of my gross income that matches up with my paystubs. I also received a 1099-MISC for $1,926 which is for the education expenses. The classes and tests only amount to $1,189 so I am fairly certain the extra amount on the 1099-MISC is due to the time I spent sitting in class since he directly said "As well, you will be 1099'd for all licensure expenses incurred, and all time off from work to sit in class. Any expenses incurred to advance your professional career with the agreement that during your probation period, if you left you would be taxed on the economic benefit of what you took with you."

We did not have any written or verbal agreement regarding the education expenses and a probationary period was never mentioned to me. The tests were mandatory for my job. It was a small firm with no handbook or anything setup that would prevent confusion such as this.

My questions here are:
1) Do I have to pay tax on the education expenses?
2) If I do, should they be on the W-2 instead of a 1099-MISC? I was never an independent contractor and was told to be at work M-F 8-5.
3) If I do not have to pay the tax, what would be the reason to tell the IRS? Is it a work-related education expense or is there another tax principle that would exclude me from paying tax on this?
4) The amount on the 1099-MISC that is over the actual expenses are, I assume, from my wages while sitting in class. I received paychecks for class days so this amount is also included in my W-2. It is not correct to have my wages paid while sitting in class reflected on the 1099, right?

Thank you very much for reading and I appreciate anyone who could help.