Employer-funded Education exceeding IRS ceiling of $5250

From: "Atanu K. Deb Baruah" <baruah@execpc.com>
Subject: Employer-funded Education exceeding IRS ceiling of $5250
Date: Tue, 10 Nov 1998 01:27:05 -0600

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This one's for the Tax gurus at Persfin Digest:

I've been told (by our Payroll) that IRS has a ceiling
of $ 5250 for employer funded tuition/educational expenses
for graduate education, which is non-taxable.. any tuition/
educational expense paid by the employer beyond $5250 will
appear as gross income on my W-2 and I'll be responsible for
the taxes (at my marginal tax rate!)..

I've heard about Education credits for 1998 tax year - I think
in 1998 Form 1040 draft, line # 44 is for education credits..
I'm curious if there's any provision for graduate education
credit.. and what's the AGI limit for such credits, if any??
(seems unlikely that single-filers with AGI > $60k will be elligible
for any credit)..

What are other other alternatives?

Itemize as miscellaneous deductions (subject to 2% offset) and
include books and stationery and mileage to the excess tuition
over $5250???

Or should I buy an Education IRA this year??

I'd appreciate some suggestions..

Thanks!



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