Graduate study re-imbursements taxable ?

[chayan]

My company is re-imbursing me for Graduate study but deducting taxes from my salary based on the re-imbursement.

I was told that Graduate study is 100% taxable for the employee. Is this true ? HAs anybody else faced this situation before ? How can I avoid being taxed ?

 

[ShyCat]

It's true. The IRS considers it a taxable benefit, same as any life insurance your company provides over $50,000. There's no way around it.