Submitted By: someone
Answered: September 11, 2017 11:53 pm

I received a reimbursement of tuition that I previously paid. Is this taxable?

It depends on the source of the reimbursement.

  • If the school is reimbursing you for an overpayment because you received a scholarship or withdrew from a course, the payment isn’t taxable if it’s in the same year in which you made the payment. If you made the payment last year and took a tax break (tuition and fees deduction; education credit), you likely have to report income.
  • If the reimbursement was from an employer, determine whether it is from an education assistance plan that can be used for any type of education (which caps annual tax-free reimbursements at $5,250) or general reimbursement for job-related education, which is tax free with no dollar limit.
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Tax Glossary

Self-employment tax

Tax paid by self-employed persons to finance Social Security coverage. In 2007, there are two rates. A 12.4% rate applies to a taxable earnings base of $95,700 or less and a 2.9% rate applies to all net earnings.

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