[in Your State]

Loophole for IRS Educational Reimbursement Maximum

Last post 04-07-2008, 3:46 PM by regdunlop. 1 replies.
Sort Posts:
  •  04-03-2008, 4:24 PM 4765

    nass28 is not online. Last active: 04-04-2008, 11:13 AM nass28



    Not Ranked



    Joined on 04-04-2008



    Posts 1



  • Loophole for IRS Educational Reimbursement Maximum

    I am aware that the IRS establishes an annual cap of $5,250 for educational reimbursements to be considered non-taxable income. I also know about the exclusion from this cap for education which qualifies for the "working condition fringe benefit" exclusion. Does anyone know of a loophole to this stated maximum for the benefit to be considered non-taxable which states that if the payment goes directly to the school and is not a "reimbursement" to the employee, the full amount of tuition can be considered non-taxable?
  •  04-07-2008, 3:46 PM 4802 in reply to 4765

    regdunlop is not online. Last active: 07-10-2008, 1:14 PM regdunlop



    Top 10 Contributor



    Joined on 04-13-2007



    Posts 152



  • Re: Loophole for IRS Educational Reimbursement Maximum

    i aint no tax expert but i doubt there is a loophole like the one you describe.  but i believe there are cases that tuition help can be treated as non-taxable income above $5,250.

     see this irs pub

     "

    Benefits over $5,250.   If your employer pays more than $5,250 for educational benefits for you during the year, you must generally pay tax on the amount over $5,250. Your employer should include in your wages (Form W-2, box 1) the amount that you must include in income.
    Working condition fringe benefit.    However, if the benefits over $5,250 also qualify as a working condition fringe benefit, your employer does not have to include them in your wages. A working condition fringe benefit is a benefit which, had you paid for it, you could deduct as an employee business expense. For more information on working condition fringe benefits, see Working Condition Benefits in chapter 2 of Publication 15-B, Employer's Tax Guide to Fringe Benefits.
     


     

View as RSS news feed in XML
Use of this site constitutes your agreement to the terms and condition specified in the HR.BLR.com Forum Agreement