Jobs in DSP

Clay <clay@claysturner.com> wrote:
(snip)
 
> In the US, when your employer pays for grad school, that is a taxable
> benefit, unlike the case for undergrad. But tuition wavers offered by
> the school are however tax exempt! If the school's cost combined with
> an endentured servant's salary is low enough, its being taxable may
> not be a big deal. 

When I was in grad school there was always the question about
changes in the tax laws.  Also, it might be that TA (teaching)
and RA (research) might have different tax treatment.

> It just depends on where you sit on the pay scale.
> I enjoyed teaching (for a tuition waiver) at the school as it created
> no tax issues since I also had a full time day job.

I believe it is still usual for them to cover tuition.  One that
I just checked, as it did 20 years ago, covers tuition with
at least a 25% time (I believe there is also a maximum) position.
Usual is 50%, either TA or RA.

-- glen

On Feb 24, 12:21&#4294967295;pm, glen herrmannsfeldt <g...@ugcs.caltech.edu>
wrote:
> Clay <c...@claysturner.com> wrote:
>
> (snip)
>
> > In the US, when your employer pays for grad school, that is a taxable
> > benefit, unlike the case for undergrad. But tuition wavers offered by
> > the school are however tax exempt! If the school's cost combined with
> > an endentured servant's salary is low enough, its being taxable may
> > not be a big deal.
>
> When I was in grad school there was always the question about
> changes in the tax laws. &#4294967295;Also, it might be that TA (teaching)
> and RA (research) might have different tax treatment.
>
> > It just depends on where you sit on the pay scale.
> > I enjoyed teaching (for a tuition waiver) at the school as it created
> > no tax issues since I also had a full time day job.
>
> I believe it is still usual for them to cover tuition. &#4294967295;One that
> I just checked, as it did 20 years ago, covers tuition with
> at least a 25% time (I believe there is also a maximum) position.
> Usual is 50%, either TA or RA.
>
> -- glen

Actually the waiver treatment is quite straight forward. Since the
institution waives the tuition fee, it is considered to not be income.
For other situations this is inputed income and you are still
responsible for taxes but a special set aside is created in the
federal tax law. Several years ago Congress brought up the tax exempt
status of tuition waivers for discussion and universally the schools
said that if the TAs, RAs, PTIs etc had to pay taxes on their waivers,
that the schools could no longer employ them at the endentured pay
rates and they certainly could not afford to pay them normal rates
either. So the schools would be strongly hindered.  So Congress upheld
the tax exempt status. And I don't see this changing anytime soon.

Clay

On Feb 24, 12:10=A0pm, Clay <c...@claysturner.com> wrote:
> On Feb 24, 12:04=A0pm, Rob Gaddi <rga...@technologyhighland.com> wrote:
>
>
>
>
>
> > On Wed, 24 Feb 2010 07:09:08 -0800 (PST)
>
> > Clay <c...@claysturner.com> wrote:
> > > [snip]
>
> > > I think it is harder now. The cost of tuition has gone up much faster
> > > than the amount of assistanceship. Now we have had big budget cuts in
> > > the state and the universities have annouced more fee increases. But
> > > sounds like you got a great deal. Back then I had an employer who pai=
d
> > > my undergraduate degree and then my teaching during grad school paid
> > > for that.
>
> > > Clay
>
> > A friend of mine working for a large company that rhymes with Eneral
> > Geletric says that not only do they cover her grad school tuition (up
> > front, not as a reimbursement), but that she also gets PTO for the time
> > that she's in classes. =A0Nice deal if you can get it. =A0Of course, th=
at
> > still leaves the bootstrapping issue of getting the job with EG with
> > only the bachelor's, but that problem is left as an exercise for the
> > student.
>
> > --
> > Rob Gaddi, Highland Technology
> > Email address is currently out of order
>
> In the US, when your employer pays for grad school, that is a taxable
> benefit, unlike the case for undergrad. But tuition wavers offered by
> the school are however tax exempt! If the school's cost combined with
> an endentured servant's salary is low enough, its being taxable may
> not be a big deal. It just depends on where you sit on the pay scale.
> I enjoyed teaching (for a tuition waiver) at the school as it created
> no tax issues since I also had a full time day job.
>
> Clay- Hide quoted text -
>
> - Show quoted text -

Clay,

Not always true about grad school being taxable.

Check out:  http://www.irs.gov/pub/irs-tege/fringe_benefit_fslg.pdf


Basically (not legal advice):
If the training maintains or improves your skills required for doing
your present work, not taxable.
or
If the training is required by your employer or law to maintain your
present position, salary or status, not taxable.


My observation (limited, so others can put their 2 cents in) is that
the employer won't approve the course unless it meets one of these
conditions.

Dirk



Ben Franklin said " A penny saved is a penny earned." No longer true.
With taxes it might be "2 pennies saved is 3 pennies earned."

On Feb 24, 6:16=A0pm, Dirk Bell <bellda2...@cox.net> wrote:
> On Feb 24, 12:10=A0pm, Clay <c...@claysturner.com> wrote:
>
>
>
>
>
> > On Feb 24, 12:04=A0pm, Rob Gaddi <rga...@technologyhighland.com> wrote:
>
> > > On Wed, 24 Feb 2010 07:09:08 -0800 (PST)
>
> > > Clay <c...@claysturner.com> wrote:
> > > > [snip]
>
> > > > I think it is harder now. The cost of tuition has gone up much fast=
er
> > > > than the amount of assistanceship. Now we have had big budget cuts =
in
> > > > the state and the universities have annouced more fee increases. Bu=
t
> > > > sounds like you got a great deal. Back then I had an employer who p=
aid
> > > > my undergraduate degree and then my teaching during grad school pai=
d
> > > > for that.
>
> > > > Clay
>
> > > A friend of mine working for a large company that rhymes with Eneral
> > > Geletric says that not only do they cover her grad school tuition (up
> > > front, not as a reimbursement), but that she also gets PTO for the ti=
me
> > > that she's in classes. =A0Nice deal if you can get it. =A0Of course, =
that
> > > still leaves the bootstrapping issue of getting the job with EG with
> > > only the bachelor's, but that problem is left as an exercise for the
> > > student.
>
> > > --
> > > Rob Gaddi, Highland Technology
> > > Email address is currently out of order
>
> > In the US, when your employer pays for grad school, that is a taxable
> > benefit, unlike the case for undergrad. But tuition wavers offered by
> > the school are however tax exempt! If the school's cost combined with
> > an endentured servant's salary is low enough, its being taxable may
> > not be a big deal. It just depends on where you sit on the pay scale.
> > I enjoyed teaching (for a tuition waiver) at the school as it created
> > no tax issues since I also had a full time day job.
>
> > Clay- Hide quoted text -
>
> > - Show quoted text -
>
> Clay,
>
> Not always true about grad school being taxable.
>
> Check out: =A0http://www.irs.gov/pub/irs-tege/fringe_benefit_fslg.pdf
>
> Basically (not legal advice):
> If the training maintains or improves your skills required for doing
> your present work, not taxable.
> or
> If the training is required by your employer or law to maintain your
> present position, salary or status, not taxable.
>
> My observation (limited, so others can put their 2 cents in) is that
> the employer won't approve the course unless it meets one of these
> conditions.
>
> Dirk
>
> Ben Franklin said " A penny saved is a penny earned." No longer true.
> With taxes it might be "2 pennies saved is 3 pennies earned."- Hide quote=
d text -
>
> - Show quoted text -

Hello Dirk,

Actually according to the details of the document you linked, graduate
education is taxable unless you receive a tuition reduction for
teaching/researching for the school. So if your private employer
reimburses you for grad school, that is taxable. That's is what I
meant by tuition waivers for teaching. The waiver is a form of tuition
reduction.

Clay

p.s I have discussed this with my CPA more than once.

From the link:


"Tuition reductions for graduate education are considered =93qualified=94
and are tax free if they are provided by an eligible educational
institution to a graduate student who performs teaching or research
activities for that institution. All other tuition reductions for
graduate education are taxable."

On Feb 24, 10:31=A0pm, Clay <c...@claysturner.com> wrote:
> On Feb 24, 6:16=A0pm, Dirk Bell <bellda2...@cox.net> wrote:
>
>
>
>
>
> > On Feb 24, 12:10=A0pm, Clay <c...@claysturner.com> wrote:
>
> > > On Feb 24, 12:04=A0pm, Rob Gaddi <rga...@technologyhighland.com> wrot=
e:
>
> > > > On Wed, 24 Feb 2010 07:09:08 -0800 (PST)
>
> > > > Clay <c...@claysturner.com> wrote:
> > > > > [snip]
>
> > > > > I think it is harder now. The cost of tuition has gone up much fa=
ster
> > > > > than the amount of assistanceship. Now we have had big budget cut=
s in
> > > > > the state and the universities have annouced more fee increases. =
But
> > > > > sounds like you got a great deal. Back then I had an employer who=
 paid
> > > > > my undergraduate degree and then my teaching during grad school p=
aid
> > > > > for that.
>
> > > > > Clay
>
> > > > A friend of mine working for a large company that rhymes with Enera=
l
> > > > Geletric says that not only do they cover her grad school tuition (=
up
> > > > front, not as a reimbursement), but that she also gets PTO for the =
time
> > > > that she's in classes. =A0Nice deal if you can get it. =A0Of course=
, that
> > > > still leaves the bootstrapping issue of getting the job with EG wit=
h
> > > > only the bachelor's, but that problem is left as an exercise for th=
e
> > > > student.
>
> > > > --
> > > > Rob Gaddi, Highland Technology
> > > > Email address is currently out of order
>
> > > In the US, when your employer pays for grad school, that is a taxable
> > > benefit, unlike the case for undergrad. But tuition wavers offered by
> > > the school are however tax exempt! If the school's cost combined with
> > > an endentured servant's salary is low enough, its being taxable may
> > > not be a big deal. It just depends on where you sit on the pay scale.
> > > I enjoyed teaching (for a tuition waiver) at the school as it created
> > > no tax issues since I also had a full time day job.
>
> > > Clay- Hide quoted text -
>
> > > - Show quoted text -
>
> > Clay,
>
> > Not always true about grad school being taxable.
>
> > Check out: =A0http://www.irs.gov/pub/irs-tege/fringe_benefit_fslg.pdf
>
> > Basically (not legal advice):
> > If the training maintains or improves your skills required for doing
> > your present work, not taxable.
> > or
> > If the training is required by your employer or law to maintain your
> > present position, salary or status, not taxable.
>
> > My observation (limited, so others can put their 2 cents in) is that
> > the employer won't approve the course unless it meets one of these
> > conditions.
>
> > Dirk
>
> > Ben Franklin said " A penny saved is a penny earned." No longer true.
> > With taxes it might be "2 pennies saved is 3 pennies earned."- Hide quo=
ted text -
>
> > - Show quoted text -
>
> Hello Dirk,
>
> Actually according to the details of the document you linked, graduate
> education is taxable unless you receive a tuition reduction for
> teaching/researching for the school. So if your private employer
> reimburses you for grad school, that is taxable. That's is what I
> meant by tuition waivers for teaching. The waiver is a form of tuition
> reduction.
>
> Clay
>
> p.s I have discussed this with my CPA more than once.
>
> From the link:
>
> "Tuition reductions for graduate education are considered =93qualified=94
> and are tax free if they are provided by an eligible educational
> institution to a graduate student who performs teaching or research
> activities for that institution. All other tuition reductions for
> graduate education are taxable."- Hide quoted text -
>
> - Show quoted text -

Clay,

I don't read pages 79-82 that way.  My last employer, a major defense
contractor, was paying for graduate education to enhance peoples'
performance in their current job, taking no taxes.

Dirk

On Feb 25, 1:52=A0am, Dirk Bell <bellda2...@cox.net> wrote:
> On Feb 24, 10:31=A0pm, Clay <c...@claysturner.com> wrote:
>
>
>
>
>
> > On Feb 24, 6:16=A0pm, Dirk Bell <bellda2...@cox.net> wrote:
>
> > > On Feb 24, 12:10=A0pm, Clay <c...@claysturner.com> wrote:
>
> > > > On Feb 24, 12:04=A0pm, Rob Gaddi <rga...@technologyhighland.com> wr=
ote:
>
> > > > > On Wed, 24 Feb 2010 07:09:08 -0800 (PST)
>
> > > > > Clay <c...@claysturner.com> wrote:
> > > > > > [snip]
>
> > > > > > I think it is harder now. The cost of tuition has gone up much =
faster
> > > > > > than the amount of assistanceship. Now we have had big budget c=
uts in
> > > > > > the state and the universities have annouced more fee increases=
. But
> > > > > > sounds like you got a great deal. Back then I had an employer w=
ho paid
> > > > > > my undergraduate degree and then my teaching during grad school=
 paid
> > > > > > for that.
>
> > > > > > Clay
>
> > > > > A friend of mine working for a large company that rhymes with Ene=
ral
> > > > > Geletric says that not only do they cover her grad school tuition=
 (up
> > > > > front, not as a reimbursement), but that she also gets PTO for th=
e time
> > > > > that she's in classes. =A0Nice deal if you can get it. =A0Of cour=
se, that
> > > > > still leaves the bootstrapping issue of getting the job with EG w=
ith
> > > > > only the bachelor's, but that problem is left as an exercise for =
the
> > > > > student.
>
> > > > > --
> > > > > Rob Gaddi, Highland Technology
> > > > > Email address is currently out of order
>
> > > > In the US, when your employer pays for grad school, that is a taxab=
le
> > > > benefit, unlike the case for undergrad. But tuition wavers offered =
by
> > > > the school are however tax exempt! If the school's cost combined wi=
th
> > > > an endentured servant's salary is low enough, its being taxable may
> > > > not be a big deal. It just depends on where you sit on the pay scal=
e.
> > > > I enjoyed teaching (for a tuition waiver) at the school as it creat=
ed
> > > > no tax issues since I also had a full time day job.
>
> > > > Clay- Hide quoted text -
>
> > > > - Show quoted text -
>
> > > Clay,
>
> > > Not always true about grad school being taxable.
>
> > > Check out: =A0http://www.irs.gov/pub/irs-tege/fringe_benefit_fslg.pdf
>
> > > Basically (not legal advice):
> > > If the training maintains or improves your skills required for doing
> > > your present work, not taxable.
> > > or
> > > If the training is required by your employer or law to maintain your
> > > present position, salary or status, not taxable.
>
> > > My observation (limited, so others can put their 2 cents in) is that
> > > the employer won't approve the course unless it meets one of these
> > > conditions.
>
> > > Dirk
>
> > > Ben Franklin said " A penny saved is a penny earned." No longer true.
> > > With taxes it might be "2 pennies saved is 3 pennies earned."- Hide q=
uoted text -
>
> > > - Show quoted text -
>
> > Hello Dirk,
>
> > Actually according to the details of the document you linked, graduate
> > education is taxable unless you receive a tuition reduction for
> > teaching/researching for the school. So if your private employer
> > reimburses you for grad school, that is taxable. That's is what I
> > meant by tuition waivers for teaching. The waiver is a form of tuition
> > reduction.
>
> > Clay
>
> > p.s I have discussed this with my CPA more than once.
>
> > From the link:
>
> > "Tuition reductions for graduate education are considered =93qualified=
=94
> > and are tax free if they are provided by an eligible educational
> > institution to a graduate student who performs teaching or research
> > activities for that institution. All other tuition reductions for
> > graduate education are taxable."- Hide quoted text -
>
> > - Show quoted text -
>
> Clay,
>
> I don't read pages 79-82 that way. =A0My last employer, a major defense
> contractor, was paying for graduate education to enhance peoples'
> performance in their current job, taking no taxes.
>
> Dirk- Hide quoted text -
>
> - Show quoted text -

Did the educational compensation show up on their W-2 as part of their
total wages, tips, and other compensation? That's where it would be. I
won't say there are no eceptions, but there are almost no exceptions.
Even elsewhere in the IRS's document there is a comment that the total
graduate compensation (for all employees combined) can not exceed a
small value which is in the neighborhood of $5500 per year. That won't
cover much education if more than one employee receives the benefit in
a year.

Yesterday the Chancelor of the University System of Georgia said to
expect the tuition costs for state schools to increase 77% next year.
So getting a graduate degree will be a lot more pricy unless you do
the teaching/researching and benefit from the tuition waiver.
Companies will be less likely to fund the grad school's costs
regardless of the tax impact.

Clay