sponsership

[yasklegal]

What is the name of your state (only U.S. law)? Georgia.

My company is sponsoring me to go back to school with the expectation that I should return to the company after completing my degree or pay the entire tuition cost back to the company.

I will be a full time student and not working for the company during this time.

As part of the arrangement (contract), the company is paying me directly and thus I am incurring the tax burden.

My question are:
1. If I chose not to return, do I need to pay the entire amount (including the taxes) back to to company?
2. Does the fact that I am paying taxes make this a gift rather than a loan?
Thanks!

 

[LdiJ]

What is the name of your state (only U.S. law)? Georgia.

My company is sponsoring me to go back to school with the expectation that I should return to the company after completing my degree or pay the entire tuition cost back to the company.

I will be a full time student and not working for the company during this time.

As part of the arrangement (contract), the company is paying me directly and thus I am incurring the tax burden.

My question are:
1. If I chose not to return, do I need to pay the entire amount (including the taxes) back to to company?
2. Does the fact that I am paying taxes make this a gift rather than a loan?
Thanks!

I am not sure that the money is taxable. To me, this could be a loan since you would have to pay it back if you do not return to the company.

However, this is something that a tax professional would want to research to be certain. Take your copy of the contract and go get a consult with a local tax professional. You want someone with a lot of experience in researching tax issues.

 

[LdiJ]

What is the name of your state (only U.S. law)? Georgia.

My company is sponsoring me to go back to school with the expectation that I should return to the company after completing my degree or pay the entire tuition cost back to the company.

I will be a full time student and not working for the company during this time.

As part of the arrangement (contract), the company is paying me directly and thus I am incurring the tax burden.

My question are:
1. If I chose not to return, do I need to pay the entire amount (including the taxes) back to to company?
2. Does the fact that I am paying taxes make this a gift rather than a loan?
Thanks!

I am not sure that the money is taxable. To me, this could be a loan since you would have to pay it back if you do not return to the company.

However, this is something that a tax professional would want to research to be certain. Take your copy of the contract and go get a consult with a local tax professional. You want someone with a lot of experience in researching tax issues.