How can i determine what is the appropriate tax rate for tuition reimbursement above the $5250 tax free limit?

[Carl]

Your tax liability is not based so much as why you received the money. It's more on what the money is used for, as well as what tax bracket your total household income falls into.  See the tax brackets for 2019 at <a rel="nofollow" target="_blank" href="https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2019">https://www.i...>
Additionally, be aware that congress did not renew the qualified out of pocket expenses deduction for tax year 2018, and it's unknown if they will for 2019. So basically, unless the law changes any amount over $5,250 paid to you by your employer has to be included on your W-2 and will be taxable income to you unless congress renews the OOP expense deduction.

[dgartman88]

Thanks for the quick reply Carl, I asked this question because i just hit the $5250 limit and they taxed me at a much higher rate than they do on my normal paycheck. My benefits department was not helpful in telling me why.

[Carl]

Your benefits department was not helpful most likely because they don't have the first clue about taxes. Their specialty/function is benefits - not taxes. Here's a better breakdown of how tax rates work. That last website I provided you falsely leads the reader to believe that all of their income is taxed at the same rate, and that's just not true.
<a rel="nofollow" target="_blank" href="https://www.nerdwallet.com/blog/taxes/federal-income-tax-brackets/">https://www.nerdwallet.com/blog/...>
Now the top of that page shows the brackets/ranges for 2018. Scroll down a bit to get the new limits for the 2019 tax year.

[dgartman88]

Thanks, very helpful link. This just makes me more confused why they've taxed the tuition reimbursement at close to 50% which they stated is according to IRS regulations. My regular income tax rate is about 30%.

[Carl]

It will all work out in the wash at tax filing time. But 50% withholding? First, you need to see what you have on the W-4 you filed with the employer. They are required to use what you claim on the W-4 you provided them, in figuring your withholding. Next, I would ask them to cite what specific IRS regulation they are referring to. If this is the benefits department telling you this, then it's not the fact that I would not expect them to have the first clue about taxes, but more the fact that "apparently" they think you're so stupid that you'll believe whatever they tell you.

[Critter]

Ok ... if the money they gave you  was all put on one check  then for that one pay period you may have been withheld at the higher 37% tax rate + FICA taxes + state taxes which can easily be nearing the 50% mark especially if you have other non deductible items coming from the paycheck like life insurance.   But don't worry ... it all works out in the end on the tax return and will probably increase the refund a bit.