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Level 1
June 7, 2019
Question

Are the tuition reimbursements provided to me for my two college children from my university employer a "tax-free employer provided assistance?"

  • June 7, 2019
  • 2 replies
  • 10 views
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2 replies

Hal_Al
Level 15
Level 15
June 7, 2019

Yes, a tuition "reduction" or "waiver" is totally tax free, if your children are your dependents and undergrad students. Technically, an actual "reimbursement" by an employer is limited to $5250 tax free. But, as long as the benefit is not reported on a tax document (W-2 or 1099-Misc) , it is considered a reduction, for college employees.

Graduate education is treated slightly differently. See page 8 of Publication 970.  https://www.irs.gov/pub/irs-pdf/p970.pdf

Critter
Level 15
June 7, 2019

Yes it is.