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.

hmhull1 · ‎June 4, 2019

IreneS · ‎June 4, 2019

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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View solution in original post

IreneS · ‎June 4, 2019

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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**Mark the post that answers your question by clicking on "Mark as Best Answer"

hmhull1 · ‎June 4, 2019

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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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.