When a Tax-Free Employee Benefit Gets Taxed

When a Tax-Free Employee Benefit Gets Taxed by Susan Moussi

{2:28 minutes to read}  A recent court case illustrates the need to pay attention to your timing when taking advantage of tax-free benefits.

In Voigt, T. C. Summ. 2018 – 25, an employee was laid off from the university he worked at in 1991. As part of the severance package from the university, he or his dependents could receive a certain amount of tuition waivers that corresponded to his years of service. The waivers had several limitations in place, but apparently not one specific limitation that would keep the taxpayer from using the waivers in 2013 — 22 years after leaving the university. 

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