Need help with 1098-T when employer pays 100% tuition through Guild - confused about tax filing question

Thanks for the info! Quick question - how do I know if my employer already included the amount over $5,250 in my W-2? Is there a specific box I should check? And what if the education is sort of related to my job but not directly required for it?

The amount would be included in Box 1 of your W-2 (wages, tips, other compensation), but there isn't a separate box that specifically identifies education benefits. You might need to ask your HR or payroll department if they included amounts over $5,250 in your taxable wages. They might also provide a separate statement explaining your education benefits. For education to qualify as a working condition fringe benefit, it generally needs to maintain or improve skills required for your current job. It doesn't necessarily have to be required by your employer, but there should be a reasonable connection to your current position. If you're pursuing education to qualify for a new trade or business, it typically won't qualify for the exclusion beyond the $5,250 limit.

Did it actually explain what to do IN TurboTax though? That's where I'm stuck - the software keeps asking if I want to claim education credits and I don't know which buttons to click without messing something up.

I'm skeptical about these tax tools. How is this different from just using TurboTax or talking to HR? Seems like another thing trying to get my personal info.

Yes, it actually gives you step-by-step guidance for TurboTax specifically! It shows you exactly which options to select when those education credit questions pop up. For Guild benefits, it told me to enter the 1098-T information but then decline the education credits since I didn't personally pay the expenses. The difference from just using TurboTax alone is that it specializes in these edge cases that regular tax software doesn't explain well. And unlike HR (who often just say "consult your tax advisor"), it gives specific guidance for your situation. It doesn't replace TurboTax - it just helps you use it correctly. They don't store your docs permanently either - they analyze them to give you answers and then you can delete.

How does this even work? I thought it was impossible to get through to the IRS. Do they have some special phone number or something?

Yeah right. Nobody gets through to the IRS. I've tried calling dozens of times this tax season already. If this actually worked, everyone would be using it instead of suffering through the regular IRS phone tree hell.

It works by using technology to navigate the IRS phone tree and hold times for you. Instead of you personally waiting on hold for hours, their system does the waiting and calls you back when an actual IRS agent is on the line. No special phone numbers - they just use the regular IRS channels but have figured out how to efficiently get through them. I was super skeptical too! I had tried calling the IRS four separate times and gave up after 1+ hour holds each time. With Claimyr, I submitted my request, went about my day, and got a call back when an agent was ready to talk. The IRS agent I spoke with gave me clear guidance on my Guild Education benefits and confirmed I was handling it correctly.

Wait, that's super helpful. How do you determine if education qualifies as a "working condition fringe benefit"? Is there some IRS test for this?

The IRS uses what's called the "job-relatedness" test to determine if education qualifies as a working condition fringe benefit. Basically, the education needs to maintain or improve skills needed in your current job. It can't be education that would qualify you for a new trade or business or that's required to meet the minimum requirements of your current position. For example, if you're an IT professional taking advanced programming courses to improve your current skills, that might qualify. But if you're an IT person taking accounting classes to switch careers, that wouldn't qualify. The IRS Publication 15-B has more details on this, but it's definitely worth asking your employer about since they should have made this determination already when deciding whether to include amounts in your W-2.

I actually called Guild's customer service last week about this exact issue! They said they're working on providing better tax guidance for next year. The rep suggested checking your employer's benefits portal for tax info specific to your company's education program.

This is exactly the kind of clear explanation I needed! Thank you so much for breaking it down step by step. I was getting overwhelmed by all the different advice online, but your summary makes perfect sense. Quick follow-up - when you say "enter the 1098-T information but select No for education credits" in TurboTax, does that mean I still need to go through the entire education section even though I won't be claiming anything? I'm worried about accidentally triggering something I shouldn't.

Yes, you'll need to go through the education section in TurboTax even though you won't be claiming credits. The software needs to know that you received a 1098-T form for reporting purposes. Here's what typically happens: 1. TurboTax will ask if you received any 1098-T forms - answer "Yes" 2. Enter the information from your 1098-T (the amounts in the boxes) 3. When it asks who paid the expenses, select that your employer paid them 4. When it asks if you want to claim education credits, it should automatically determine you're not eligible since you didn't pay the expenses yourself Don't worry about accidentally triggering something - TurboTax is pretty good about recognizing employer-paid education situations once you indicate that you didn't personally pay the expenses. The key is being honest about who actually paid the tuition costs. The software will handle the rest and ensure you're not claiming credits you shouldn't claim.

Thank you so much for mentioning that separate tax statement! I just went back and checked my W-2 envelope and sure enough, there was a little slip I had completely overlooked that explained exactly how my employer handled the education benefit taxation. It showed that $2,800 of my Guild tuition was included in my W-2 Box 1 wages since my total benefit was $8,050. I also found that "Employer or third party" option in TurboTax that you mentioned - it makes such a difference! Before I was stuck in this loop of the software asking me about expenses I never actually paid. Now it's clear that I need to report receiving the 1098-T but I'm not eligible for any education credits since I didn't pay out of pocket. It's amazing how much clearer this all becomes when you know what to look for. Thanks for taking the time to share those specific details - they made all the difference for someone like me who was completely new to this situation!

You've got it exactly right! That's the perfect summary of what everyone has shared here. I went through this same process last month and it's really not as scary as it seems once you understand the steps. One small tip - when you're looking through your W-2 envelope for that separate statement, also check if your employer has any education benefit information in their online portal or benefits website. Some companies post tax guidance there that explains exactly how they handled amounts over the $5,250 limit. And don't feel bad about finding this confusing - even tax professionals sometimes need to research employer-paid education benefits because every company handles them slightly differently. The important thing is you're being careful to do it right, which is exactly what you should do. Good luck with your filing!