Taxation of Calendar Yr Tuition Reimbursement

[Guest LMPett]

How does incurred vs. reimbursement work within the context of the IRS?

For example, an employee completes a course in fall 2007. Employer reimbursement of $5,000 is made in early 2008 after paperwork has been submitted.

Employee takes another course in spring 2008. Employer is willing to reimburse another $5,000 for 2008 course, but is non-taxable?

IRS regs not clear. I know $5,250 is non-taxable per calendar year. But does the first reimbursement made in 2008 for the 2007 course count as a 2007 calendar year reimbursement?

Thanks for any guidance.

[Guest LMPett]

Just an FYI in case anyone views this question...I spoke to the IRS (Harry Beker's office) and the IRS goes by the date the cost for the course/class was incurred. So an employee could receive tax-free reimbursement in excess of $5,250 in a calendar year if the excess was reimbursement for a prior year course. This is informal guidance.