So now I'm a bit confused. The was no mention that "Universities (unlike other employers) are allowed to do tuition remission totally tax free". how it was explained to me was that the university offers a set number of units that can be reimbursed (paid directly to the university) per year but moneywise the first $5250 would be tax free and then above that taxes would be deducted from my paycheck corresponding to the classes/tuition each semester, But basically for the year the classes totaled $20,000 so after the $5250 was deducted i had taxes withheld on the $14,250. On my 1099T box 1 has a small amount that was graduate fees i paid and box 5 was empty
