It depends on the source of the reimbursement.
- If the school is reimbursing you for an overpayment because you received a scholarship or withdrew from a course, the payment isn’t taxable if it’s in the same year in which you made the payment. If you made the payment last year and took a tax break (tuition and fees deduction; education credit), you likely have to report income.
- If the reimbursement was from an employer, determine whether it is from an education assistance plan that can be used for any type of education (which caps annual tax-free reimbursements at $5,250) or general reimbursement for job-related education, which is tax free with no dollar limit.