|STATE OF CONNECTICUT|
THE STATE COMPTROLLER
55 ELM STREET
HARTFORD, CONNECTICUT 06106-1775
MEMORANDUM NO. 95 - 36
May 26, 1995
TO THE HEADS OF ALL STATE AGENCIES
|Attention:||Chief Administrative and Fiscal Officers, Business
Managers, and Payroll and Personnel Officers
|Subject:||Reportability of Reimbursed Employee Tuition Payments|
Effective December 31, 1994 the Internal Revenue Code (IRC) Section 127, "Educational Assistance Programs", expired. However, IRC Section 132,"Exclusion of Certain Fringe Benefits from Gross Income", does apply to the following educational reimbursements.
Please use the following guidelines when determining reportability.
If your education is not required for your current position and it maintains or improves skills needed in your current position, it is non-reportable.
This includes refresher courses, courses on current developments, and academic or vocational courses.
Courses taken to meet the minimum educational requirements for your current position are reportable.
Courses that are a part of a program of study that can qualify you for a new trade or business are reportable even if you are not seeking a new job.
Review courses to prepare for the bar examination or the certified public accountant (CPA) examination are reportable because that qualifies you for a new profession.
The State Accounting Manual, Expenditure Section, regarding "Reportability of Educational Expenses and Reimbursements" will be revised with the next update.
Questions may be directed to the Office of the State Comptroller as follows:
Accounts Payable Procedures:
Central Accounts Payable Division, 566-8979 or 566-3895.
Forms and On-Line: Central Payroll Division, 566-5428;
Remote Job Entry: Computer Services Division, 566-3214.
Accounting Systems Division, 566-5337.
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