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hmhull1
New Member

Do we have to pay tax on a employer tuition benefit used towards my son's tuition? We submitted the tuition bill and the company reimbursed us, not him or the college.

 
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IreneS
Intuit Alumni

Do we have to pay tax on a employer tuition benefit used towards my son's tuition? We submitted the tuition bill and the company reimbursed us, not him or the college.

UPDATED FOR TAX YEAR 2019

 

No - not unless they paid more than $5,250

If your employer pays more than $5,250 for educational benefits for you during the year, you must generally pay tax on the amount over $5,250. Your employer should include in your wages (Form W-2, box 1) the amount that you must include in income.

 

[Edited | 4/13/2020 |  10:28 am PDT]

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2 Replies
IreneS
Intuit Alumni

Do we have to pay tax on a employer tuition benefit used towards my son's tuition? We submitted the tuition bill and the company reimbursed us, not him or the college.

UPDATED FOR TAX YEAR 2019

 

No - not unless they paid more than $5,250

If your employer pays more than $5,250 for educational benefits for you during the year, you must generally pay tax on the amount over $5,250. Your employer should include in your wages (Form W-2, box 1) the amount that you must include in income.

 

[Edited | 4/13/2020 |  10:28 am PDT]

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
hmhull1
New Member

Do we have to pay tax on a employer tuition benefit used towards my son's tuition? We submitted the tuition bill and the company reimbursed us, not him or the college.

Thank you!  In Turbo Tax, when I add it as the benefit either under "other scholarships" or "employer provided assistance", the program treats it as taxable.  I guess I will just omit it. i

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