Tuition Reimbursement above $5250

[za369]

I know you can claim tuition reimbursement above $5250 as a fringe benefit if it is related to your job, but I am not sure how to do so. Is this something my employer would have to designate or something I do while filing taxes?

[Anonymous_]

Please refer to the following IRS web site (link below).

https://www.irs.gov/publications/p15b#en_US_2019_publink1000193671

[za369]

So it looks like this would be the employer that does it? What if it the employer does not do this? Is there any way to claim it as a fringe benefit after the fact?

[IsabellaG · Accepted solution]

No, there's no way for you, the employee, to claim a fringe benefit deduction on your tax return. The employer reduces your W-2 wages by the amount of any allowable fringe benefits.

To clarify: if your employer reimburses you for tuition, up to $5250 can be excluded from your wages by your employer as a fringe benefit, so it doesn't show up on your W-2. If you are reimbursed more than that, the excess is included in your W-2, unless it's considered a working condition benefit. The link that @Anonymous_ provided gives an explanation. 

The current tax law doesn't allow deductions for employee business expenses, so employees who spend their own money for things like job-related car expenses, travel, education, or tools get no deduction at all.

[za369]

Thank you for the information! I am just wondering what to do in a situation where the benefit I am receiving (tuition) is definitely a fringe benefit (it helps with and is completely related with my job), but the employer does not seem to know how to label something as a fringe benefit for the amount above $5250, and claim that such a thing does not exist?

[IsabellaG]

See IRS Publication 15-B.  On Page 23, it states: "To qualify, the education must meet the same requirements that would apply for determining whether the employee could deduct the expenses had the employee paid the expenses. Degree programs as a whole don't necessarily qualify as a working condition benefit. Each course in the program must be evaluated individually for
qualification as a working condition benefit."

Perhaps you can discuss this information with your employer if you feel that your education meets the standard.

[Anonymous_]

@za369 Are you working for a small/medium size employer. Is it possible to discuss your scenario directly with someone at your employer's tax accounting firm?