topic Tuition Gross Up in Education

Tuition Gross Up

carlosdpargas — Tue, 24 Feb 2026 05:33:43 GMT

My employer paid for 100% of my bootcamp tuition. The invoice for that was 11,495.

I know that 5,250 are tax free, so I have to pay taxes on the rest which is 6,245.

My employer added 2,632.04 besides the 6,245 to my taxable wages as Tuition Gross Up.

What does that mean? I did not receive that money.

Re: Tuition Gross Up

Vanessa A — Mon, 10 Apr 2023 18:00:05 GMT

To gross up means that you were paid more than you actually received so it would cover the taxes. Basically they paid you almost $9k and gave $2,632 to the IRS for you as a withholding like they withhold taxes on your regular wages and gave the other $6,245 to the school for your tuition.

If they wouldn't have "grossed up" your income, then you would have had to pay the taxes on your own on the taxable portion of the tuition assistance.

Re: Tuition Gross Up

carlosdpargas — Mon, 10 Apr 2023 18:04:07 GMT

Since they withhold the $2,632, would that be reflected on my w2 as federal withholding? Or would it be only reflected on my box 1 for wages?

Re: Tuition Gross Up

Vanessa A — Mon, 10 Apr 2023 18:14:49 GMT

It would be reflected in both. You would see your wages in box 1,3, 5 and state and local income increased and the allocable amount in boxes 2, 4 and 6 increased by their percentage. The total of the increase in box 2,4 and 6 and your state and local boxes would equal the $2,632. It would not just be in one box.

Re: Tuition Gross Up

carlosdpargas — Mon, 10 Apr 2023 18:26:07 GMT

Thank you so much for clarifying.