Do I need to amend my 2005 return?

Question

I received misc. non-taxable compensation on my 2006 return for an education reimbursement. I took the actual payment of the tuition (MBA Program, $12,000) as a deduction in 2005. Do I need to amend my 2005 return or can/should I simply declare the reimbursement as taxable on my 2006 return? If so, how/where do I do this on the 1040?

Thanks.

Answer 1

Since you received reimbursement in 2006, you must claim as income in 2006 an amount equal to the amount of the deduction taken in 2005.

List it on the Other Income line and write "Tuition Deduction Reimbursement from 2005" next to the entry.