Employer Pays For School - Taxed as Income?

[davekmv]

I live in Oregon.

If my employer pays for my graduate school while I remain employed do I end up paying for the tuition as taxable income? Does it make a difference if they re-imburse me vs. paying directly? Probably not...

Thanks

[irsos]

Originally Posted by davekmv

I live in Oregon.

If my employer pays for my graduate school while I remain employed do I end up paying for the tuition as taxable income? Does it make a difference if they re-imburse me vs. paying directly? Probably not...

Thanks

If the employer has an educational assistance plan, up to $5,250 may be excluded from your gross income. They can pay it directly or reimburse you. There are some restrictions.