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If waived tuition fees is part of the graduate students benefits do they have to include it in their tax declarations? Do they pay tax on this "benefit"?
by bjourne 4y ago
If waived tuition fees is part of the graduate students benefits do they have to include it in their tax declarations? Do they pay tax on this "benefit"?
- vuln 4y ago> Free or reduced tuition provided by eligible educational institutions to its employees may be excludable from gross income as a qualified tuition reduction. Whether a tuition reduction is a “qualified” tuition reduction and excludable from income depends on whether it is for education below or at the graduate level and whether the tuition reduction represents payment for services. https://www.irs.gov/government-entities/federal-state-local-governments/qualified-tuition-reduction https://www.irs.gov/government-entities/federal-state-local-...
- rwalle 4y agoThat was the focus of a fight when Trump was pushing for tax reform in 2017. Students would need to pay taxes on the remitted tuition which can be a few hundred to a few thousand dollars, which is a lot of money -- many don't even have $20k in total annual salary. In the end that part of the law did not change and students did not pay that extra tax.
- analog31 4y agoHigher education is like what they say about airline pricing: No two people on the plane paid the same price for their ticket. When I was in grad school, we referred to tuition as "funny money." The tuition level is arbitrary and simply represents a worst case maximum. What each student pays is determined by some other means. There was also a threat to tax the tuition waiver during the Reagan administration, when I was in grad school. It caused a lot of consternation among students, but the university eventually told us that we'd be taken care of, and we didn't worry about it.