irs tuition reimbursement taxation parameters amount
taxable tuition reimbursement notice This notice outlines tax withholding practices for tuition reimbursement amounts in excess of $5,250.00 per calendar year. Undergraduate courses and graduate courses reimbursed up to $5,250.00 are NOT taxable. Please review this document for important information about tax withholding obligations for taxable tuition reimbursement above $5,250.00. Taxable Tuition Payments: In accordance with current federal, state and local withholding regulations, income tax withholding must take place from all taxable tuition payments. The taxation questions answered during the application process are used to determine whether reimbursement in excess of $5250.00 is taxable, per IRS guidelines. Our tuition reimbursement vendor, Edcor, makes payment, via check, for the gross amount approved (no income tax is withheld).