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Education
Q. My employer will cover 5,250 direct pay not tax, but anything after that will be taxable. Can I get a credit any of it?
A. Yes. Up to $10,000 of tuition, each year, paid with after tax money (whether you regular income or an "employer grant") is eligible for the Lifetime Learning Credit (LLC), which is 20% of the amount paid. So, essentially you get most of that tax back.
Q. Is it worth it to still go to school if I will have to pay taxes on the extra amount?
A. Yes.
Q. Would I avoid paying less taxes if I choose the option for reimbursement for the money after 5,250 annual.
A. There is no option. What you describe is the standard employer plan, per IRS rules (the first $5250 is tax free; anything over is taxable income.
‎June 28, 2022
12:22 PM