Greetings,

I will be negotiating my compensation package for a position within a company in the very near future. Within the list of benefits I would like to negotiate with the potential employer is tuition assistance for my child's college tuition. Are corporations able to reimburse the tuition for children of employees and receive the $5,250 annual tax deduction?

Thank you,

Sammie G.

I guess It depends; in some companies, after a certain years of employment, all of an employee's children who apply for undergraduate admission and who can meet the academic requirements receive a tuition waiver.In general, ERs get tax write-offs for providing educational benefits to their EEs.Up to $5,250 of educational benefits given to each EE can be omitted from their wage earning history. This means that the EE will not have to pay federal income tax on the educational benefit. Furthermore, neither the EE nor the company will have to pay Medicare and Social Security taxes on the amount of tuition reimbursement. Federal and state unemployment taxes are also not required on the amount of the benefit given to each EE. For reimbursements that exceed $5,250 per EE, the company must include the excess on EE’s W-2 form, which ultimately increases the amount of income an EE reports on a tax return.So I guess you can lk to the ER for more accurate info in detail.

There is soem college benefit porgram for an EE's child;the college tuition benefit makes it possible for ERs to provide EE's children, grandchildren, nieces and nephews with a guaranteed college scholarship.

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