Taxability of educational benefits


Loccisano, Kim;
To all,
Please see the information from Kim L. below.  As you can see good news came with bad.  The good news was the cap of the benefit for nurses went from $4320 (2016) to $5600 (2017).  The IRS limit before reporting is $5250.  Hence, the bad news, those that took the maximum benefit in 2017 are now above the IRS reporting threshold.  For 2018, members should weigh whether they want to take the full benefit and exceed the cap.  This all depends on each person’s unique tax situation. 
However, it should be noted that ONLY the amount above the IRS threshold of $5250 is reported.  So for that benefit only $350 should be reported as taxable income and the inclusion of $350 in additional income with OSC most likely taking out withholding on that $350 (maybe around $140),  This assumes it is the only benefit you received for educational benefits in a calendar year or did not receive the higher level benefits (which you would have received these letters previously)
We wanted to get you the explanation so you know what caused more letters than usual to be sent out by OSC.
Todd M. Kerner
Executive Director
NYS Public Employees Federation
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From: Loccisano, Kim 
Sent: Tuesday, December 26, 2017 10:39 AM
To: Kerner, Todd
Cc: Delgado, Renee
Subject: increase in benefit for 2017
Here are the numbers for the 2017 increased educational benefit for CTR.
For Undergraduate Courses
2016 – $270 per credit hour
2017 – $350 per credit hour
2016 – maximum benefit for 2 courses at 4 credit hours each – $2,160
2017 – Maximum benefit for 2 courses at 4 credit hours each – $2,800
For Graduate Courses
2016 – $453 per credit hour
2017- $550 per credit hour.
2016 – maximum benefit for 2 courses at 4 credit hours each – $3,624
2017 – Maximum benefit for 2 courses at 4 credit hours each $4,400
Then….if the member is a nurse, you can double the benefit using their Nurses Enhanced College Tuition Reimbursement (NECTR) Benefit
So….that means that the nurses could have doubled their benefits to look like these numbers
Undergraduate using NECTR-
2016 – $4320 for 4 undergrad courses
2017 – $5600 for 4 undergrad courses
Graduate courses using NECTR
2016 – $7248 – for 4 Graduate courses
2017 – $8,800 for 4 Graduate courses.
Kimberly Loccisano
Training Specialist
NYS Public Employees Federation
1-800-342-4306 ext. 240

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