baykal
Apr 2, 2007, 02:34 PM
I was a Teaching Assistant on F1 visa, and I received Tuition Assistance that covered most of my tuition. However, my university included this assistance as wage on my W-2 and I had to pay taxes on this.
However, I've come across with IRS Pub. 970, and on page 7, it has a section called Qualified Tuition Reduction. According to this;
A tuition reduction you receive for graduate education is qualified, and therefore tax free, if both of the following requirements are met.
· It is provided by an eligible educational institution. (it is)
· You are a graduate student who performs teaching or research activities for the educational institution. (yes I was a graduate student and a Teaching Assistant)
On the same form and page, Qualified Tuition Reduction is declared as:
If you are allowed to study tuition free or for a reduced rate of tuition, you may not have to pay tax on this benefit. This is called a “tuition reduction” … A tuition reduction is qualified only if you receive it from an eligible educational institution and use it at an eligible institution. (I used it to pay some 2/3rds of my tuition, rest I had to pay out of pocket.)
Based on this IRS code, it looks like the Tuition Assistance I got should be tax free. But my school web-page states it is considered as wages. But my pay check stub clearly says "Tuition Assistance" for it. Do I qualify for this? If so, how should I deduct this?
However, I've come across with IRS Pub. 970, and on page 7, it has a section called Qualified Tuition Reduction. According to this;
A tuition reduction you receive for graduate education is qualified, and therefore tax free, if both of the following requirements are met.
· It is provided by an eligible educational institution. (it is)
· You are a graduate student who performs teaching or research activities for the educational institution. (yes I was a graduate student and a Teaching Assistant)
On the same form and page, Qualified Tuition Reduction is declared as:
If you are allowed to study tuition free or for a reduced rate of tuition, you may not have to pay tax on this benefit. This is called a “tuition reduction” … A tuition reduction is qualified only if you receive it from an eligible educational institution and use it at an eligible institution. (I used it to pay some 2/3rds of my tuition, rest I had to pay out of pocket.)
Based on this IRS code, it looks like the Tuition Assistance I got should be tax free. But my school web-page states it is considered as wages. But my pay check stub clearly says "Tuition Assistance" for it. Do I qualify for this? If so, how should I deduct this?