Discussion:Private School Teachers' Pretax Tuition Deductions

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{{ForumNewPost|UserID=Sfbcpa|Date=4 November 2009|Text=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.}} {{ForumNewPost|UserID=Sfbcpa|Date=4 November 2009|Text=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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 +{{ForumReplyPost|UserID=Natalie|Date=November 5, 2009|Text=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. }}

Revision as of 07:15, 5 November 2009

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
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.

Natalie (talk|edits) said:

November 5, 2009
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.