Author Topic: Deduction for educational expenses and ex-employer fiasco  (Read 2144 times)

jeromedawg

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Deduction for educational expenses and ex-employer fiasco
« on: January 21, 2017, 10:22:14 PM »
Hey all,

So I started at a new company in 2016 but the events leading up to (and even through) that in 2015-2016 was a real PITA with my previous company. In short, I had gotten tuition assistance reimbursement in 2015 from my prior company but after I left and started at the new company, in 2016, they forced me to pay it all back since I left within a year of taking the assistance (policy is that you are obligated to recompense if you "willingly" leave, which I apparently did in lieu of them giving me a "target termination date" of mid-2016... :T - lose-lose situation for me based on how their lawyers drafted things up). Anyway, I don't recall exactly what happened when I filed for 2015 taxes but I don't think I would have declared the 'payback' anyway (since it occurred in 2016), which means that I think I should declare it this go-around right?

Are there any 'gotchas' or anything else I should be aware of here when filing? I noticed I can either take a "Tuition and Fees Deduction" or a "Education Credit" (not sure which would be better to take or if I'm only qualified to take on vs the other). It seems like when they ask for details around the education credit claim, they specifically ask about the institution I took courses from in 2016, so I'm not quite sure what to do about that in this situation since I took the course in 2015.
« Last Edit: January 22, 2017, 12:03:03 AM by jplee3 »

NoStacheOhio

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Re: Deduction for educational expenses and ex-employer fiasco
« Reply #1 on: January 23, 2017, 07:43:58 AM »
Maybe talk to a CPA?

You might need to file an amended 2015 return, since that's when you took the classes.

jeromedawg

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Re: Deduction for educational expenses and ex-employer fiasco
« Reply #2 on: January 23, 2017, 09:12:49 AM »
Maybe talk to a CPA?

You might need to file an amended 2015 return, since that's when you took the classes.

The issue though is that my previous company's W4 reflects the tuition assistance reimbursement in my salary for the 2015 year. They requested all of it back at the beginning of 2016. So I wouldn't have anything to technically 'amend' for 2015, right?

NoStacheOhio

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Re: Deduction for educational expenses and ex-employer fiasco
« Reply #3 on: January 23, 2017, 09:17:57 AM »
Maybe talk to a CPA?

You might need to file an amended 2015 return, since that's when you took the classes.

The issue though is that my previous company's W4 reflects the tuition assistance reimbursement in my salary for the 2015 year. They requested all of it back at the beginning of 2016. So I wouldn't have anything to technically 'amend' for 2015, right?

If the W4 no longer reflects reality, then I'd say that's a pretty good case for amending. Do you have documentation from the 2016 clawback?

jeromedawg

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Re: Deduction for educational expenses and ex-employer fiasco
« Reply #4 on: January 23, 2017, 09:38:06 AM »
Maybe talk to a CPA?

You might need to file an amended 2015 return, since that's when you took the classes.

The issue though is that my previous company's W4 reflects the tuition assistance reimbursement in my salary for the 2015 year. They requested all of it back at the beginning of 2016. So I wouldn't have anything to technically 'amend' for 2015, right?

If the W4 no longer reflects reality, then I'd say that's a pretty good case for amending. Do you have documentation from the 2016 clawback?

I hope I have the documentation for the clawback! I'll have to dig through my records to pull it up but there was a letter written requesting everything. And I have the bank record of the deposit, etc. Is there anything more specific that I would need? Aside from amending the 2015 tax return, I was also needing to amend my basis on my 8606 for 2014 but have since stalled on doing that. I should be able to do all this in one fell swoop, no?

NoStacheOhio

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Re: Deduction for educational expenses and ex-employer fiasco
« Reply #5 on: January 23, 2017, 10:00:30 AM »
Maybe talk to a CPA?

You might need to file an amended 2015 return, since that's when you took the classes.

The issue though is that my previous company's W4 reflects the tuition assistance reimbursement in my salary for the 2015 year. They requested all of it back at the beginning of 2016. So I wouldn't have anything to technically 'amend' for 2015, right?

If the W4 no longer reflects reality, then I'd say that's a pretty good case for amending. Do you have documentation from the 2016 clawback?

I hope I have the documentation for the clawback! I'll have to dig through my records to pull it up but there was a letter written requesting everything. And I have the bank record of the deposit, etc. Is there anything more specific that I would need? Aside from amending the 2015 tax return, I was also needing to amend my basis on my 8606 for 2014 but have since stalled on doing that. I should be able to do all this in one fell swoop, no?

I don't know what all you would need to amend the tuition part, but your best bet is to talk to a CPA. My understanding is that you can amend returns up to three years previous.

jeromedawg

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Re: Deduction for educational expenses and ex-employer fiasco
« Reply #6 on: January 23, 2017, 11:20:36 AM »
So I just asked a CPA friend - he says I should request an amended 2015 W2 from my prior company and then amend proceed to amend the 2015 taxes.

The crappy part about all this is getting ahold of someone in my prior company's payroll dept and not an automated response
« Last Edit: January 23, 2017, 11:31:16 AM by jplee3 »

NoStacheOhio

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Re: Deduction for educational expenses and ex-employer fiasco
« Reply #7 on: January 23, 2017, 12:03:50 PM »
So I just asked a CPA friend - he says I should request an amended 2015 W2 from my prior company and then amend proceed to amend the 2015 taxes.

The crappy part about all this is getting ahold of someone in my prior company's payroll dept and not an automated response

IIRC you were still on good terms with a manager at OldCompany? Maybe see if they can do you a favor by putting you in touch with a real human?

jeromedawg

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Re: Deduction for educational expenses and ex-employer fiasco
« Reply #8 on: January 23, 2017, 03:39:20 PM »
So I just asked a CPA friend - he says I should request an amended 2015 W2 from my prior company and then amend proceed to amend the 2015 taxes.

The crappy part about all this is getting ahold of someone in my prior company's payroll dept and not an automated response

IIRC you were still on good terms with a manager at OldCompany? Maybe see if they can do you a favor by putting you in touch with a real human?

I finally got through to someone - the receptionist at HQ forwarded me to the wrong dept initially. I also confirmed with an old coworker who still works there. I was able to speak with someone and also followed up by email. Hope they get an amended one out soon... as far as filing is concerned, I may just get help from another CPA friend to do the tax amendments I need.