What is the tax rate on tuition reimbursement?
November 24, 2008
mparkerson2 asked:
I am normally taxed about about 21% of pay in taxes.
I am normally taxed about about 21% of pay in taxes.
I’ve broken the $5,250 barrier allowed by the federal government on tuition reimbursement from my employer.
However, when I submitted my $1029.35 bill for tuition reimbursement here is how I was paid-
Total bill – $1029.35
Federal Income Tax – $257.34
Social Sec. Tax – $63.82
Medicare Tax – $14.92
MA State Tax – $54.56
Amt paid to employee – $638.71
Anyone know much about this? That’s close to 40% taxes paid!
One Response to “What is the tax rate on tuition reimbursement?”
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November 26th, 2008 at 9:45 am
this is getting close,,, but you need to watch this closlely,, because a lot are not fileing this as income.
if they do not get a 1099 ,, get with you tax person,, i have used turbo tax program for 8 years now. they have a q&e section..