Tuition Reimbursement Given as Taxable Income

[livestrong]

What is the name of your state?What is the name of your state? OH

I have read the forums and I did sign paperwork agreeing to return the tuition money if I left prior to 12 months after my last course, etc, etc, but one thing is bothering me. My company delegated the money as taxable income and included it with my paycheck (meaning I included it as part of my taxable gross income last year) and if I repay it my income will be messed up and I will have overpaid on my taxes. I've heard grumblings from friends from the same company that they never actually do come after you for the money, but I don't want this hanging over me. It seems like the company would then be required to file amended W2s for their part as well as mine with the government (social security tax, benefits determinations, etc, etc). Let me know if this scenario is any different than what other people are going through and whether or not this is something I need to pursue. Thanks!

 

[pattytx]

It's not the employer has increased your taxable income because of the tuitition reimbursement . It's because you signed an agreement saying you would pay it back if you resigned within 12 months. Apparently you did resign, and you did not repay. The employer is following IRS regulations for an unforgiven, un-repaid loan.