I am a little confused about this part of the new tax bill just signed...Employer-provided educational assistance: The law allows for a $5,250 tax break for graduate studies beginning in 2002. Currently only undergraduate courses qualify for this tax-free benefit. I received reimbursement from my company for graduate courses last year but don't recall paying taxes on it. Is it that reimbursesment taxable as income?
Graduate courses are tax free under old law if they advance your current profession. For example, as a CPA I can take graduate tax courses and not be penalized. But I can't take graduate law courses with the idea of qualifying to be a lawyer, even though law courses advance my profession. It's because the courses qualify me for a new profession.If it was taxable, your company should have put it on your W-2. Since they didn't, I wouldn't worry about it.
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