Employee Tuition Assistance May Be Taxed in 2013

Reimbursement for college classes through Duke's Employee Tuition Assistance program could become taxable in 2013 if Congress does not extend a provision that currently excludes from income up to $5,250 a year in employer-provided tuition assistance.

The provision, Section 127 of the U.S. tax code, is set to expire Dec. 31, 2012. It was established in 1978 and has been extended by Congress several times, most recently in 2010. This does not apply to the Children's Tuition Grant program, which is subject to different IRS regulations.

"As we approach the end of the year, there remains much uncertainty regarding potential changes in the U.S. tax code," said Kyle Cavanaugh, vice president for administration. "We have contacted employees currently participating in the program and those registered to take classes next year to let them know of the pending legislation in case the provision is not extended."

Those participating in the program must submit requests for reimbursement of classes for 2012 to Duke’s Benefits office by Dec. 14, 2012. This will ensure full reimbursement is made by Dec. 31. Requests received after Dec. 14 are not guaranteed for reimbursement before Dec. 31; reimbursements issued as of Jan. 1, 2013 will be taxed, if the legislation is not extended."

We will continue to keep program participants updated as we approach the New Year and decisions are made," Cavanaugh said.

For more information about Duke's Employee Tuition Assistance Program, please visit the Duke Human Resources website.