My work pays for my tuition, and everything after the $5,250 was considered and entered as Federally taxable income, box 1 on my W-2.
The education I receive qualifies as working condition fringe benefit, so it should not be considered taxable income. The 6 courses qualify because they are training me in my field, it is not to meet the minimum requirements of my position, and the education is not preparing me for a job that is in a new field. How do I file now that the W-2 is essentially incorrect? I've asked my employer to correct my W-2 but they said:
"We would not issue a corrected w-2 as the taxes that were collected are correct since CMU will withhold taxes regardless of if you decide to pursue looking into this option while filing taxes. We do not have any tax advice or recommendations on who may be able to assist you with applying for an exemption while filing your taxes but I can confirm that everything on the CMU side would be reported as is with no changes. I apologize that we are not able to be of more assistance when it comes to the taxation exemptions but since we are not tax experts, there is little information we are able to provide on this topic.
Generally, employer-provided graduate tuition benefits that exceed $5,250 in a calendar year are subject to federal withholding. Tuition benefits may be tax-free if they represent a working condition fringe benefit under IRS regulations. While Carnegie Mellon University is required to withhold federal taxes on graduate tuition benefits that exceed $5,250 in a calendar year, employees may consult with their tax advisor to determine if they qualify for any exemptions when filing their tax return."
Thanks!
