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Tuition reduction/discount from employer?

Forum|Forum|2 years ago
December 9, 2023
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I am trying to get a head start on taxes so I can get done earlier once I have all my forms. I work for a state university, so I get a tuition discount. Since they are my employer, I was wondering if I need to report "employer-provided assistance." My university simply reduces the charges themselves, so there is no payment coming from the university to credit the charges or reimburse me. I am guessing that I can select "no" since the 1098-T will be reduced already?

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Best answer by Hal_Al

Q. Do I need to report my tuition reduction as "employer-provided assistance." ?

A. No. As you said, the university simply reduces the charges themselves, so there is no payment coming from the university to credit the charges or reimburse you.

Q. I am guessing that I can select "no" since the 1098-T will be reduced already?

A. That is correct.

For an explanation, see page 8 of Pub 970

https://www.irs.gov/pub/irs-pdf/p970.pdf

B

Bsch4477

Employee

Free or reduced tuition provided by eligible educational institutions to its employees may be excludable from gross income as a qualified tuition reduction. Whether a tuition reduction is a “qualified” tuition reduction and excludable from income depends on whether it is for education below or at the graduate level and whether the tuition reduction represents payment for services.