There are four distinct circumstances in which employer-provided educational assistance is nontaxable.
Advertisement
TOPICS
Individuals
Taxation of Frequent Flyer Miles
A benefit has only lately received attention after flying under the radar for many years: tax-free receipt of frequent flyer miles.
The ABCs of Acquisitive Reorganizations
This column addresses the call for more active teaching methods by providing tax educators an interactive spreadsheet assignment to incorporate into an introductory taxation course.
Sec. 83 Substantial Risk of Forfeiture Clarified
The IRS issued proposed regulations that would clarify when a substantial risk of forfeiture exists on the transfer of stock to an employee that is treated as compensation under Sec. 83.
Supreme Court: Health Care Mandate Is Constitutional as a Tax
The Supreme Court declared the mandate requiring U.S. citizens and legal residents to maintain minimum essential health coverage to be a permissible exercise of Congress’s taxing powers under the Constitution.
Proposed Regs. Would Clarify Who Is Subject to Sec. 274(n) Limit on Meal Expenses
The IRS released proposed regulations clarifying which party is subject to the rule that limits the deduction for meals to 50% of the expenses incurred.
Taxpayers Who Did Not Establish Insolvency Must Recognize COD Income
Taxpayers who settled a credit card debt for $4,412 less than they owed in 2008 had to include that amount in income because they did not prove they were insolvent under Sec. 108(a)(1)(B) at the time of the debt discharge (Shepherd, T.C. Memo. 2012-212). Sec. 108(a)(1)(B) excludes cancellation of debt
Tax Court Upholds Regulation Requiring Dependents Be Citizens in Year Tax Benefits Are Claimed
The Tax Court upheld Regs. Sec. 1.152(a)(1), which requires that children be U.S. citizens at some time during the calendar year for which the children are claimed as dependents.
Self-Employed Can Deduct Medicare Premiums, IRS Chief Counsel Advises
The Office of Chief Counsel advised that self-employed individuals may deduct Medicare premiums from their self-employment income.
Debtors’ Taxes Are Not Discharged in Bankruptcy Where Tax Return Was Filed Late
A federal appeals court held that bankrupt debtors who filed their income tax return 17 months after their income taxes were assessed were not entitled to have those taxes discharged in the bankruptcy proceeding.
Federal Income Tax Treatment of Certain Transferable State Tax Credits
The emergence of online marketplaces and auction houses has provided a single point of contact for both sellers and buyers, making sales and purchases of transferable state tax credits more common.
Global High-Wealth Audit Update
While the IRS audit rate for individual returns of persons earning less than $200,000 has hovered at about 1% over the past several years, 12% of individual taxpayers with incomes of $1 million or more were audited in fiscal year 2011.
Get the Most Out of Overpayments Applied to the Following Year’s Return
A taxpayer can elect to have an overpayment refunded or applied to the subsequent year’s estimated tax payment. This election, once made, is generally irrevocable.
Prop. Regs. Allow Taxpayers to Deduct Certain Local Lodging Expenses
The IRS issued proposed regulations that permit employees to treat certain expenses paid or incurred for local lodging as deductible business expenses.
2013 HSA Inflation Adjustments Released
The IRS issued the inflation-adjusted figures for the annual contribution limitation for HSAs and the minimum deductible amounts and maximum out-of-pocket expense amounts for high-deductible health plans for calendar year 2013.
Taxes From Postpetition Farm Sale Are Not Dischargeable
The Supreme Court ruled that taxes on gain from the sale of a farm after its owner had filed a Chapter 12 bankruptcy petition were not taxes incurred by the bankruptcy estate.
Deducting Employee MBA Expenses
The deductibility of the cost of an MBA degree under Sec. 162(a) as a trade or business expense for an employee is a complex subject, with several factors to consider.
Contributing to a Child’s IRA
Establishing an IRA in a child’s name can be an effective planning technique for a child with earned income.
Taxing the Transfer of Debts Between Debtors and Creditors
Assumptions and other transfers of debt between corporations and shareholders or between partnerships and partners can often be tax free as part of a contribution, distribution, reorganization, or liquidation. This article analyzes several types of debt transfers and their potential for recognition of gain or loss and income from cancellation of debt.
Supreme Court Upholds Health Care Law
The Supreme Court declared the mandate requiring U.S. citizens and legal residents to maintain minimum essential health coverage to be a permissible exercise of Congress’s taxing powers under the Constitution.
TAX PRACTICE MANAGEMENT
2025 tax software survey
AICPA members in tax practice assess how their return preparation software performed during tax season and offer insights into their procedures.
