Tuition Reimbursement $5250

Hi,

I am in an MBA program that started in August 2019 and ended in May 2021. Because of Covid, our tuition reimbursement was suspended in early 2020 but reinstated for Fall 2020. I submitted to get reimbursed and my class ended at the end of the year and I was paid in January 2021. I submitted for my last term, Winter 2020 (starting in January 2021) and am trying to get paid out, but my employer doesn't think I can get paid again this year. Is this correct? Remember, my payment for this year was for last year's term (Fall 2020).

Thank you.

posted

Q. My employer doesn't think I can get paid again this year. Is this correct?

A. Yes. You're limited to $5250, tax free reimbursement payments, per calendar year.

You're employer has options. They can pay you in 2021, but it will have to be considered taxable income (meaning both you and they will have to pay your/their share of FICA too). They can wait and pay you in 2022. The payments do not have to be made in the same year as the education nor match your payments to the school.