[snow067]

So my firm was nice enough to pay for my Becker Materials. I’m assuming this is taxable to me. However, I have no idea how much they paid for it. Would the cost be included to my W-2? Or do I have to include it on my 1040 myself? I have only finished 3/4 of the review so would it all be taxable? I assume the fine people on A71 would know where I am coming from on this one!

REG - 80 (5/30/2012)
BEC - 92 (10/20/2012)
AUD - 90 (2/4/2013)
FAR - 80!!(5/30/2013)

And I am outta here!

[MCLKT]

My REG book says:

Employer Provided education assistance if derived from employer's qualified educational assistance program is excluded up to $5,250/yr.

A:[73]97 F:[74]85 R:86 B:[74]82
*NINJA 10 Pt. COMBO & Yaeger*

[SeattleAccountant]

@Snow,

Here is snip from IRS Pub 15-B (guidance for employers)

“Educational Assistance: This exclusion applies to educational assistance you provide to employees under an educational assistance program. The exclusion also applies to graduate level courses. …..

Exclusion from wages. You can exclude up to $5,250 of educational assistance you provide to an employee under an educational assistance program from the employee's wages each year.

Assistance over $5,250. If you do not have an educational assistance plan, or you provide an employee with assistance exceeding $5,250, you must include the value of these benefits as wages, unless the benefits are working condition benefits. …”

Not included in wages = not taxable to employee

Becker Class of Jan - Aug 2013: FARB DONE!!!!
CPA license pending 🙂

[MCLKT]

I also think if you are working for a public firm it would be considered a working condition, right?

A:[73]97 F:[74]85 R:86 B:[74]82
*NINJA 10 Pt. COMBO & Yaeger*

[Anonymous]

I don't know if it would be considered educational assistance (I think of that more as helping paying for an MBA or something), but I'm B4 and considering how many people they pay for study materials for, I'm sure they would include it in our W-2's if it was taxable. Or at least notify us that it had to be added to our income. So I would assume not taxable income.

[mdrobbin]

Reading this post gave me a massive headache. My company reimbursed me for my study material but it's not on my W-2. Do I need to go back and have my W-2 adjusted through Human Resources or possibly add this in manually on my 1040… which means I need to pay Payroll Taxes on top of my income taxes?

Not even sure how to approach this… why did I click on this post lol… I never would have even thought about this.

FAR - 2012 - PASSED (YAEGER)
AUD - 2012 - PASSED (YAEGER + NINJA NOTES)
BEC - 2012 - PASSED (YAEGER + NINJA NOTES)
REG - 2013 - PASSED (YAEGER + NINJA NOTES + NINJA AUDIO)

ETHICS - 2013 - PASSED

DONE!!! Thank you A71 for all the support! Hiya!!!

[Anonymous]

I know this is off topic but MCLKT how did you raise your audit score? I got a 73 the last time and working on my audit retake. I am using Yaeger as well and have the Ninja audio and notes.

ADDED by MCLKT 🙂

https://www.another71.com/cpa-exam-forum/topic/aud-how-i-earned-24-additional-points

[acamp]

I work at Big4, but only had one section, which they claimed cost them $1200! I even went so far as requesting the Becker invoice, which showed the price–still find it hard to believe that a firm that buys thousands (millions?) of Becker products per year would pay $1200 for a single section.

Anyways, they added it to my income over two pay periods, basically like this:

Earnings

+600 Becker Wages

Taxes

+Lot more tax

After tax Withholdings

-600 Becker Software

So the earnings/taxes flow to the w-2, and then they deduct the earnings so they don't pay me for the software lol

Self proclaimed: Highest ratio of Replies to Others v. Posts Created on A71

California CPA - Big4 Aud Manager Alum - Private Accounting at Startups

FAR, REG and BEC with Ninja Notes + WTB Only

Ninja + Wiley Test Bank: [FAR - 81] [REG - 76] [BEC - 88] [AUD - 73](doh!)

Becker Videos: [AUD - 82]

California CPA

[Anonymous]

It is only taxable if it is not job related.

[Anonymous]

I don't think it's a working condition because they hire people w/o them. It's a working condition for manager & above but they only consider people who already have their CPA. But I think this is why you can't expense the cost if you pay for it yourself. It's like trying to deduct a legal degree, since it's not income, no related deduction is permitted.

[mdrobbin]

But if my company pays for it, do I need to claim that as income? I do know from studying REG, it is not deductible for the company, but I didn't realize I had to claim income for the expense they reimbursed me. Any clarification on that point? This will take a chunk out of my wallet I didn't expect 🙁

FAR - 2012 - PASSED (YAEGER)
AUD - 2012 - PASSED (YAEGER + NINJA NOTES)
BEC - 2012 - PASSED (YAEGER + NINJA NOTES)
REG - 2013 - PASSED (YAEGER + NINJA NOTES + NINJA AUDIO)

ETHICS - 2013 - PASSED

DONE!!! Thank you A71 for all the support! Hiya!!!

[snow067]

Wow thanks for the posts guys! After reading them, I realized that I may just have to call them up and ask if it is taxable and included on my W-2. I assumed it was already in my W-2 but who knows. I'll let everyone know what they say.

REG - 80 (5/30/2012)
BEC - 92 (10/20/2012)
AUD - 90 (2/4/2013)
FAR - 80!!(5/30/2013)

And I am outta here!

[Anonymous]

Hey Snow. Save yourself some time and spend it studying instead. It is deductible for your employer as business expense. If you paid you get to deduct subject to the 2% agi floor. Jeez, how did you get an 80 on REG and not know this?

[ub7]

https://www.irs.gov/publications/p970/ch11.html

[Author]

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