What is the tax rate on tuition reimbursement?

Question

I am normally taxed about about 21% of pay in taxes.

I've broken the $5,250 barrier allowed by the federal government on tuition reimbursement from my employer.
However, when I submitted my $1029.35 bill for tuition reimbursement here is how I was paid-
Total bill - $1029.35
Federal Income Tax - $257.34
Social Sec. Tax - $63.82
Medicare Tax - $14.92
MA State Tax - $54.56
Amt paid to employee - $638.71

Anyone know much about this? That's close to 40% taxes paid!

Answer 1

this is getting close,,, but you need to watch this closlely,, because a lot are not fileing this as income.
if they do not get a 1099 ,, get with you tax person,, i have used turbo tax program for 8 years now. they have a q&e section..