@PitchingFan posted:Don't get caught up in the educational incentive. It is not as it appears completely. It is taxed as a luxury item since it is part of a package so it can be taxed as high as 40%.
There haven't been any federal "luxury" taxes in a long time. There could be something at the state level.
The top federal bracket is currently 37%. A kid with a $1M signing bonus spread over 2 years will be close to that. When you add state and local taxes that tuition reimbursement could easily be taxes at 40% for the top tax bracket guys. Even at the $200K level you're talking about 32% federal. Not chump change when you're trying to stretch that bonus over multiple years.