Have a Tax Question? Ask a Tax Expert
Hello JA Customer,
There are several different college savings plan such as 529 plans where you can contribute tax paid money to an account that will be used for college expenses, and the earnings on that account or not taxed, although the original contributions to the account are taxable.
If your son is already of college age and you have not started one of these plans in the past, then you cannot actually pay for his college expenses with pre tax dollars. However, there are several credits offered by the IRS to help cover the cost you paid for qualified tuition expenses of a dependent.
Thank you JA Customer
Hello again Patrick,
Your employer is allowed to offer you or other employees up to a maximum of $5,250 in tuition assistance which would not be taxable income to you. However, if the employer chooses to offer this same assistance to your children, the amount must be included as part of your reported taxable wages, and you would pay taxes on this amount.
Thank you Patrick