Page 5-7 (Section 5-4a) of the text mentions “qualified tuitionreduction plans” under which an educational institution may reduceor pay the tuition for its employees, and the employees will not betaxable on the assistance.
- What criteria are used to determine whether the employerqualifies to provide nontaxable qualified tuition reductions orpayments under such a plan?
- Which individuals may receive the nontaxable qualified tuitionreductions or payments?
- Are there circumstances in which a tuition reduction or paymentmade by a qualifying employer for a qualifying individual willnevertheless be taxable to the employee? If so, describe thesecircumstances.
Please answer each question in complete sentences, and cite thetitle and number of the IRS publication or form/instruction whereyou found each answer, and the page number on which the answer isfound. Use your own words in the answer – do not copy the IRS’language. Spelling and grammar count. This assignment is worth 5points.
This assignment is due Tuesday, February 26, at 6 pm.
