I live in South Carolina and will be leaving my employer for another job soon. Some history on the company: when I started there in Feb. 2007 it was another company and over the course of the past 2 yrs it was bought by another and was a subsidiary of the large corporation with the dissolution of the my company and full adoption to a business unit of the large corporation completed Dec 2009. A letter came out in Dec 2009 stating a policy change on tuition reimbursement; however those who signed under the agreement when it was the other company are bound by that agreement. That agreement states employee leaving must repay all tuition within one year end of classes from paycheck and if not enough to cover, employee will pay on their last day. Like I said, I didn’t think I’d be quitting or I would have never used this “benefit.”
I started participation in tuition reimbursement Jan. 2009 and because I had no intention of leaving my employer, I continued using it until Dec 2009. As a grad student the company would pay up to 12K in tuition, but students would have to pay tax on anything over the government allowed 5k amount. Of course what can happen will, and as a contractor, in Jan 2010 my contract was cancelled by the client. I went through a couple months trying to obtain a suitable position in the company and even though I was given a position in the company, that I am not happy with, I have found a better offer elsewhere.
I have no issue in that I need to repay the company, even though they are trying to get 4k of it out of me because my departure is 2 weeks prior to the end date of 2 of the classes one year ago. I am letting them know they can keep my last paycheck and the money I would have gotten for vacation time which is about 4k, they will have to accept payment arrangements for the remainder or sue me because I am not taking out a loan. The big thing that I wonder is since they gave me the tuition and I had to pay income tax on it, if I pay it back can I claim it as a loss on my taxes or do I resign myself to the fact that I paid taxes on money that in essence, I didn’t really get since I am giving it back? Thanks so much!
I started participation in tuition reimbursement Jan. 2009 and because I had no intention of leaving my employer, I continued using it until Dec 2009. As a grad student the company would pay up to 12K in tuition, but students would have to pay tax on anything over the government allowed 5k amount. Of course what can happen will, and as a contractor, in Jan 2010 my contract was cancelled by the client. I went through a couple months trying to obtain a suitable position in the company and even though I was given a position in the company, that I am not happy with, I have found a better offer elsewhere.
I have no issue in that I need to repay the company, even though they are trying to get 4k of it out of me because my departure is 2 weeks prior to the end date of 2 of the classes one year ago. I am letting them know they can keep my last paycheck and the money I would have gotten for vacation time which is about 4k, they will have to accept payment arrangements for the remainder or sue me because I am not taking out a loan. The big thing that I wonder is since they gave me the tuition and I had to pay income tax on it, if I pay it back can I claim it as a loss on my taxes or do I resign myself to the fact that I paid taxes on money that in essence, I didn’t really get since I am giving it back? Thanks so much!