Question on tuition and taxes?

Question

I have a weird situation. I work for a company that also provides me with a college degree. They pay me a W-2 salary (46k) for this joint program and deduct tuition (23k) from my paycheck after taxes. Hard to live on - high living cost area. If I made an extra 10k with a part-time job, would that income be taxed more in the greater tax bracket...or can I deduct the tuition cost and get taxed less?

Answer 1

1. Du yer boss require the kollej?

Kost av gotu skuel kan be dedukted oenlee if kumpanee require it for yu tu keep yer job.  But then it bekum 1 av yer itemized dedukt.  & oenlee help if total av itemized is > standard dedukt.  23K is > standard dedukt.

2. If yu have other inkum, yu gotta tell IRS.  Tu see if that put yu in hier tax braket, look at yer last 1040 & figger out the tax with the xtra inkum.

Answer 2

You will be taxed at the highest tax rate all income is combined when you file your taxes and your company is not paying for you to go to college they pay you a higher salary like an advance which you pay back and get taxed on while the company you work for gets the $46,000 tax write they are facilitating it>

Answer 3

You are going to get taxed at the highest tax bracket overall.  You can 'neglect' to list that income during the year (and get taxed only as if the $10k was your total income) , but when you file in April, you'll be hit with

a tax bill.

You should be able to deduct your tuition from your total tax bill as other students do.

BTW, just a clarification: they are not 'providing you' with that degree, you are paying for it yourself.  They are just facilitating it for you.