Comments on: Take Advantage of Education Reimbursement

By: jim

jim — Wed, 13 Feb 2008 13:52:33 +0000

MW: You should read this and use it as inspiration.

By: Minimum Wage

Minimum Wage — Wed, 13 Feb 2008 13:16:19 +0000

I do the math. I calculate my effective tax rate through dividing my total tax by total compensation. I also calculate someone else’s effective tax rate the same way. Since a lot of people enjoy all sorts of yax breaks (e.g. tax-free tuition reimbursement, tax-free parking paid by employer, tax-free medical benefits paid by employer, retirement contributions, mortgage interest and other itemized deductions, child tax credits, child care tax credits, etc etc) it’s pretty easy for people with $50K-$100K income to pay a lower effective tax rate than someone earning $15K.

By: jim

jim — Wed, 13 Feb 2008 05:41:12 +0000

How do you arrive at that conclusion?

By: Minimum Wage

Minimum Wage — Wed, 13 Feb 2008 04:57:56 +0000

It warms the cockles of my heart to know that I’m paying a higher effective tax rate than many people with much higher incomes.

By: jim

jim — Tue, 12 Feb 2008 17:55:59 +0000

Up to $5,250 each year in tuition reimbursement is tax free, there are additional rules for after that dollar amount.

By: Minimum Wage

Minimum Wage — Tue, 12 Feb 2008 17:05:26 +0000

When your employer reimburses you, is that taxable?

By: Frugal Dad

Frugal Dad — Tue, 12 Feb 2008 16:26:19 +0000

I used tuition reimbursement to finish up about 50% of my undergraduate degree. Unfortunately, the company I used to work for cut the plan because of financial difficulties, so I had to finance the remainder of the degree. Still, it was a great deal, and I encourage anyone to take advantage.