Handling of employer tuition reimbursement

[LAT1114]

My Employer tuition reimbursement is >$5,250.

The amount over $5,250 is correctly included in all my wages for Federal, NY and NJ.

The $5,250 is correctly excluded from Federal and NY state wages, but is included in my NJ wages. Is this correct? I live in NJ and attend classes there, but work in NYC.

[AmyC]

New Jersey Income Tax return instructions lists taxable, nontaxable and differences from the federal. Employer tuition reimbursement is not listed under any of the categories. Page 9 does state that job reimbursement for job related expenses are exempt.

Without further clarity, I have to believe they added the income since it isn't exempt under the page 9 job related expenses.

Contact your employer to determine how they classified these expenses. It could be they added the income with state guidance or added it because there was no guidance.  As it stands, NJ will be looking for that income. Verify the page 9 rules and discuss it with your employer. Ask for a corrected form if you do qualify for the exclusion.