Reimbursement Being Taxed

[Booby]

Hi y'all!
I'm a newbie to this forum so forgive me if this is posted in the wrong place.
I am currently a college student being employed as a package handler and I am using reimbursement money to help me recover from how thoroughly tuition costs murder my wallet. Anyway, I got my reimbursement money for Spring 2021 today. Only to my suprise, most of it was thrown onto my regular paycheck, meaning almost half of it was taken via taxes. After calling Edcor, apparently since I was paid out for the 2020 Fall semester in January of this year, $4000 of my $5000 of non taxable money was already used up. It was my understanding that since it was for 2020, it was counted as 2020 money, not 2021 money.
Is it normal for Fall semester money to be paid out during the next calendar year? Has anyone else run into problems like this? Do I have any recourse, or is it lost to the clutches of Uncle Sam?

 

[rod]

Welcome to the real world------death and taxes

 

[Lineandinitial]

You did the right thing by coming to Brown Cafe.....

Have you read the IRS guidance material and spoken to your HR people for clarification?

It is actually an employee benefit and therefore taxable.

Your task is to find enough deductions to itemize, which you probably don't...

Maybe you can get a loan and accidentally tick "Minority" in hopes of loan forgiveness in the future....

 

[Wally]

Is a scholarship taxable?

 

[Lineandinitial]

Is a scholarship taxable?

The IRS has specific language regarding "scholarships" and the conditions under which they are tax free...
Tuition reimbursement, in general, is not the same...

 

[No1 Special]

Where is Dave when you need him?

 

[Wally]

The IRS has specific language regarding "scholarships" and the conditions under which they are tax free...
Tuition reimbursement, in general, is not the same...

The company should call them scholarships.

 

[oldngray]

The company should call them scholarships.

It isn't exactly income. More like a reduction on what you need to spend on tuition. Like a tax credit.

 

[Brownslave688]

This is no difference than a hospital paying a nurse for tuition after they’ve graduated.

Trust me it’s taxed

 

[rod]

Where is Dave when you need him?

you tell us--- Dave

 

[oldngray]

you tell us--- Dave

Send up the Dave signal

It's like a bat signal but with a big D

 

[542thruNthru]

Send up the Dave signal

It's like a bat signal but with a big D

 

[kxs783kms]

Maybe you can get a loan and accidentally tick "Minority" in hopes of loan forgiveness in the future....

Nope! Definitely needs to tick "caucasian" for the best breaks.

 

[Dragon]

Nope! Definitely needs to tick "caucasian" for the best breaks.

Damn...savage.

 

[Mr. Marshall]

You will likely see that money back as I can't imagine you have a very high tax bracket if you are a student. Unless this is your last year in school it does not much matter if fall counted this year or last but I am assuming they are consistent with the way they classify it and the year you receive it makes as much sense as anything.

 

[TearsInRain]

Say it with me: taxes are theft

 

[MyTripisCut]

Say it with me: taxes are theft

We should throw tea into the ocean!

 

[PPH_over_9000]

Send up the Dave signal

It's like a bat signal but with a big D

So I saw "Big D" and this was my first thought:

Somehow I'm not surprised that the internet didn't fail to turn up a decent image search for "big d in the sky."

 

[No1 Special]

We should throw tea into the ocean!

Wouldn't that make all of the environmentalists upset.

 

[charm299]

Wouldn't that make all of the environmentalists upset.

No because most of the environmentalists enjoy getting tea bagged