Does Tuition Reimbursement Count as Income?

As stated above, any amount of tuition reimbursement that exceeds $5,250 is considered a fringe benefit of the job, and the employee will have to pay taxes on that amount. ... Otherwise, the money will be considered taxable income.

Do I need to report tuition reimbursement on my taxes?

The IRS limits the amount of tuition that employers can reimburse tax-free each year. ... If your tuition reimbursement is $5,250 or less, your employer should not include it on your W2 and you do not have to pay taxes on it.

Is tuition reimbursement earned income?

Payments in excess of $5,250 can still be included in employee benefits packages. That said, all funding over the magic number are considered to be taxable income by the IRS. This means that tuition reimbursement in excess of this amount cannot be deducted and must be declared as income.