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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16576
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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if a company pays the tution (to the shcool) for an employees

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if a company pays the tution (to the shcool) for an employee's child is that payment considered taxable wages to the employee?

Megan C :

Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.

Megan C :

How are you today?

Megan C :

Section 127 allows employers to provide up to $5,250 per year tax free to an employee for their education.

Megan C :

However, spouses and dependents are not covered under this provision.

Megan C :

If the amount is deemed a scholarship, it can be excluded under section 117 (a)

Megan C :

But, if the employer is simply paying for dependent educational expenses, the amounts are taxable and included in the income of the employee of the company.

Megan C :

A good article on this topic can be found, HERE

Megan C :

OOPS forgot the link. HERE

Megan C :

Do you have any further questions?

Megan C :

If no further questions, please rate as "excellent" so that I may receive credit for assisting you today

Customer:

No, thank so much for your help. That is exaclty what I needed to know.

Megan C and other Tax Specialists are ready to help you
Dee,

I see we had problems in live chat, so I've switched to Q&A mode. Please review my response above. If you need further clarifications, please reply below. Otherwise, please rate as "excellent" so that I may receive credit for assisting you today. Thanks again!
Dee, I'm glad I was able to assist. Please take a moment to rate as "excellent" so that I may receive credit for assisting you today.