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Brady recently graduated from SUNY–New Paltz with his bachelor’s degree. He works for Makarov & Company CPAs. The firm pays his tuition ($10,000 per year) for him so that he can receive his Master of Science in Taxation, which will qualify him to sit for the CPA exam. How much of the $10,000 tuition benefit does Brady need to include in gross income?

Respuesta :

Answer:

Mr. Brady can embrace $4,750 as Education Benefits

Explanation:

As per the Section 127(a)(2), any taxpayer can eliminate up to $5.250 of education aids from his/her yearly revenue.

Taxable amount = Education aids - Excludable expanse

Taxable amount = $10,000 - $5,250

Taxable amount = $4,750

Therefore, Mr. Brady can embrace $4,750 from his revenue as education benefits.