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                        JeffNEWS, January 31, 1995
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Congress to Decide . . . 
Continued Tax Exemptions for Tuition Assistance in 1995? 
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Many Jeffersonians take advantage of the benefits offered by the 
Employee Tuition Assistance Program. The program has been particularly 
worthwhile because the tuition assistance has been tax free, in most cases. 

Unfortunately, the Federal law providing the tax exemption expired on 
December 31, 1994.

Previously after the law expired, Congress always reinstated the tax 
exemption. Many organizations expect Congress to follow the same course in 
1995.

At this time, the University doesn't plan to withhold taxes or report 
the tuition assistance as income in 1995. However, employees using the 
program should be aware of their potential tax liability.

If the tax exemption isn't reinstated by the end of 1995, Jefferson must 
report the benefits as taxable income in certain situations.

Situations that would not require reporting tuition assistance benefits 
regardless of whether Congress reinstates the tax exemption:

   o Undergraduate courses taken at Jefferson, whether or not they're job-
     related.

Courses are job-related if they maintain the skills employees need to 
perform their present duties. Courses are not job-related if they help 
employees qualify for a position.

   o Graduate courses taken at Jefferson that are job-related.
   o Graduate and undergraduate job-related courses taken at other 
     universities.

Circumstances that would require reporting tuition assistance benefits 
if Congress doesn't reinstate the tax exemption:

   o Graduate courses taken at Jefferson that are not job-related.
   o Graduate and undergraduate courses taken at other universities when 
     the courses are not job-related. 

You should consult your tax advisor for information about the taxability 
of tuition assistance. If you have questions about the University's 
procedures, please call Kathleen von der Hayden, assistant manager, 
employee benefits, at 5320.


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Information provided by:  Editor, JeffNEWS
                          (215) 955-6204
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