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Discussion Forum Index --> Advanced Tax Questions --> Private School Teachers' Pretax Tuition Deductions
Discussion Forum Index --> Tax Questions --> Private School Teachers' Pretax Tuition Deductions
Sfbcpa (talk|edits) said:
| 4 November 2009
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| I just got a new client that operates a private elementary school. They have been deducting tuition and childcare from their teachers' pay as a pretax item. They do not have a cafeteria plan established. I cannot find any IRS literature that supports this being deducted from their gross pay. Am I missing something? I know that if the teachers' children received reduced tuition prices that is non-taxable, but I don't see a deduction allowed from their wages for tuition deducted.
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Natalie (talk|edits) said:
| November 5, 2009
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| The tuition is a personal expense that is not a pre-tax item. If a cafeteria plan were set up, the childcare would be pre-taxable.
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Sfbcpa (talk|edits) said:
| 5 November 2009
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| Thanks. That is what I told them, but they are certain that they can do it this way because their other accountant told them this. I will recommend that they get the cafeteria plan setup.
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R2 (talk|edits) said:
| 5 November 2009
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| Tuition is not a qualified benefit for cafeteria plan. Sec. 125(f).
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