How to determine if coursework is work-related
Graduate coursework tuition/expenses waived under the University Tuition Waiver and Commonwealth Tuition Remission programs in excess of $5,250 in any calendar year is a taxable benefit unless it is considered work-related as defined in IRS Code. IRS Publication 970, excerpted below, summarizes requirements for work-related education.
For a text based version of the chart, see the text outline of Figure 11-1. Does your work-related education qualify?
Text outline of Figure 11-1. Does your work-related education qualify?
Text outline of "Figure 11-1. Does your work-related education qualify?"
Question 1: Is the education required by your employer or the law to keep your present salary, status, or job?
- If yes, proceed to question 2.
- If no, proceed to question 3.
Question 2: Does this requirement serve a bona fide business requirement of your employer?
- If yes, proceed to question 4.
- If no, proceed to question 3.
Question 3: Does this education maintain or improve skills needed in your present work?
- If yes, proceed to question 4.
- If no, your education is not qualifying work related education.
Question 4: Is the education needed to meet the minimum educational requirements of your present trade or business?
- If yes, your education is not qualifying work related education.
- If no, proceed to question 5.
Question 5: Is the education part of a program of study that will qualify you for a new trade or business?
- If yes, your education is not qualifying work related education.
- If no, your education is qualifying work-related education.
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