USAA tuition assistance

[ovasquez19]

I read this in the GUILD tax question section

"The full amount of education assistance that dependents receive under this program is fully taxable to the employee for federal and state income tax purposes. To reduce the financial burden to employees with dependents enrolled in the program, USAA will pay any applicable federal, state, and local income tax on behalf of the employee for taxable portions of education assistance" 

Can you elaborate further on how USAA will reduce the financial burden on employees with dependents enrolled in the program?

[MonikaK1]

It depends on what type of program you are referring to that USAA is offering.

If this is an employer-offered program, tax-free benefits under an educational assistance program are limited to $5,250 per employee per year. Normally, assistance provided above that level is taxable as wages. See this IRS webpage. Also see this IRS FAQ page about educational assistance programs.

[Hal_Al]

The $5250 rule usually only applies to tuition for employees.

I'm not specifically familiar with the USAA plan for  dependents, but the wording is very clear (and typical).  USAA is saying that the amount of  tuition assistance they provide is going to show up on your W-2 as additional taxable income to you. To ease the burden, USAA is going to add the amount of tax to you pay.  You'll have to ask about how they'll do that, but the usual way is to add it to you W-2 and then show it as additional withholding.