My employer pays for my college tuition (checks are sent directly to the school) which is very high (38% of my salary!). Do I have to pay taxes on this amount? I pay for books and supplies, can I deduct that somehow?
2007-06-30 15:47:03 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Is your education work-related, meaning is it intended to improve your skills at your current profession? If so, then you will not have to pay taxes on the tuition your employer pays for you. In addition, your books, supplies, travel to school, and parking are business expenses that you will deduct using Form 2106 which will then transfer to Schedule A.
If your education is not work-related, then your employer can provide you with $5,000 of tuition expenses. The balance should be shown on your W-2 in Box 1 as wages. In this case, you can take education credits or the Tuition and Fees Deduction. Your books, supplies, and transportation will not be deductible.
If you have a question as to whether or not your education is work-related, ask your employer, rather than wait and be hugely surprised.
2007-07-01 02:47:25 · answer #1 · answered by ninasgramma 7 · 0⤊ 0⤋
Depending on circumstances, the tuition payments might or might not be considered fully or partially taxable. You'd be wise to consult a CPA (NOT someplace like H&R Block or Jackson Hewitt) with all the details to get an accurate answer for your situation.
Unless you are required to buy the books and supplies FROM THE SCHOOL (not the school bookstore, but directly from the school) as a condition of attending the course, then those aren't eligible expenses for education credits. They might be eligible expenses to be deducted as unreimbursed employee business expenses, again depending on circumstances - talk to the CPA.
2007-06-30 16:36:20 · answer #2 · answered by Judy 7 · 0⤊ 1⤋
Yes. You may have some deductions. Check with a tax person.
2007-06-30 15:56:00 · answer #3 · answered by Eddy 2 · 0⤊ 0⤋