Will third-party tuition assistance from my employer affect my tax returns?

Will third-party tuition assistance from my employer affect my tax returns?

by Mark B. Zinman, CPA | Jan 11, 2019

I receive third-party tuition assistance from my employer. Will this affect my tax returns?

Tuition assistance taxability depends on the plan that the employer has. Tuition reimbursement can be part of an overall cafeteria (Section 125) plan. My suggestion is to ask your human resources department about how it is being treated. I would assume that if you have been reimbursed and not taxed on it as part of your Form W-2, then it is not taxable. Your employer should be able to confirm this.

For more resources, check out PICPA’s Money & Life Tips, Ask a CPA, or CPA Locator.

Answered by: Mark B. Zinman, CPA, is a managing partner with Zinman & Company in Southampton, Pa.

The responses are based on the limited information provided by the questioner and apply the laws and regulations at the time of posting. Other options could arise as rules and regulations may change over time, including but not limited to the passage of the Tax Cuts and Jobs Act of 2017. They are intended to provide general information, not specific accounting or tax advice; they are not intended or written to be used and cannot be used for the purpose of avoiding or evading taxes or penalties under the IRS code or regulations. Views expressed do not imply an opinion of the PICPA, its officers, directors, employees, or members.
Financial FAQs

Search the most frequently asked finance and accounting questions and read the responses from PICPA members. Always consult a CPA before taking action.