Do I pay taxes on tuition not covered by my company?

by Jennifer L. Romberger, CPA | Jun 24, 2016

I am being sponsored by my company for my MBA. The company pays the school directly (not in my W2), and the school bill is an all-inclusive tuition that includes qualifying tuition, books, housing, and food. When I received my 1098-T, it listed out the qualifying tuition and the nonqualifying. Do I need to pay taxes on the nonqualifying tuition?

No, you will not need to pay taxes on the nonqualifying tuition that’s listed on your 1098-T.

Answered by: Jennifer L. Romberger, CPA, EA, is with Long Financial Group Inc. in Blue Bell, Pa.
The responses are based on the limited information provided by the questioner and apply the laws and regulations at the time of posting. Other options could arise as rules and regulations may change over time, including but not limited to the passage of the Tax Cuts and Jobs Act of 2017. They are intended to provide general information, not specific accounting or tax advice; they are not intended or written to be used and cannot be used for the purpose of avoiding or evading taxes or penalties under the IRS code or regulations. Views expressed do not imply an opinion of the PICPA, its officers, directors, employees, or members.
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