Vanessa A
Expert Alumni

Education

If your employer paid taxes on your behalf that is considered money you earned.  It is no different than when you earn $20,000 by working.  You never see a portion of your wages because it goes directly for taxes.  Target paid you $8,877 but immediately took taxes out and paid them.  If they wouldn't have done that then the $6k they paid for tuition would still be taxable so you would have had to come up with the money on your own. 

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