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IRS tax regulations do not allow businesses to write off the cost of educational reimbursements that train you for a new job. They would have to add everything
by OldHand2018 5y ago
IRS tax regulations do not allow businesses to write off the cost of educational reimbursements that train you for a new job. They would have to add everything to your W-2 as taxable income! A JD or an MBA are big IRS red flags
https://www.irs.gov/publications/p15b https://www.irs.gov/publications/p15b
> Education. Certain job-related education you provide to an employee may qualify for exclusion as a working condition benefit. To qualify, the education must meet the same requirements that would apply for determining whether the employee could deduct the expenses had the employee paid the expenses. Degree programs as a whole don't necessarily qualify as a working condition benefit. Each course in the program must be evaluated individually for qualification as a working condition benefit.
The education must meet at least one of the following tests.
- The education is required by the employer or by law for the employee to keep his or her present salary, status, or job. The required education must serve a bona fide business purpose of the employer.
- The education maintains or improves skills needed in the job.
However, even if the education meets one or both of the above tests, it isn't qualifying education if it:
- Is needed to meet the minimum educational requirements of the employee's present trade or business, or
- Is part of a program of study that will qualify the employee for a new trade or business.
- A4ET8a8uTh0 5y agoThank you. This explains the hesitancy really well. It will be fine for the positions I target, but not at my present company.