New UET process could reduce tax liability on tuition

April 30, 2008 - The Union Education Trust is rolling out a process to reduce union members’ tax liability on tuition assistance.

OCSEA members who receive more than $5,250 in paid educational assistance in a year, either from the Union Education Trust or other sources, may have to pay income tax on that amount.

However, qualified work-related courses are exempt from the tax.

Now members can complete a form called the Educational Benefit Tax Exemption Form, get a signature from their HR Department, and submit the signed form to UET in order to receive the tax exemption.

The State’s human resource departments are charged with authorizing whether or not a course is “work related.”

UET must receive the form no later than 30 days from the date of receiving the application or voucher.

More information on how the process works and a flow chart that allows members to determine if their course qualifies for the exemption can be found at www.uedtrust.org.