Use Your TRI Pay For Tuition and Save on Taxes

If you are taking college classes, other work-related training/courses, or going to a work-related conference this school year (September 1, 2012 through August 31, 2013), you can get reimbursed on a pre-tax basis by the District from your salary. It will reimburse you for tuition, fees, and related materials (books, etc. used in the course). As no FICA, federal taxes, pension contributions, etc. will be deducted from this amount, that means a savings of about 25% for you.

There is no risk to creating a pre-tax tuition account. Any funds you do not use for courses will be refunded to you (minus taxes) on your August 2013 paycheck.

Here’s how to do this—the deadline to notify NSD is Monday, October 1st: 

• Estimate the amount of money you will spend between September 1, 2012 and August 31, 2013 
• Fill out the Conversion Request form and turn it in to Lance Andahl (landahl@nsd.org) in the Human Resources Office by Monday, October 1st. 
• The amount of money that you put on the form will be deducted from your TRI pay (Time, Responsibility, and Incentive pay, the locally negotiated pay of $7,073 to $14,476 annually that is funded from the local levy) over the next 11 months. You can deduct any amount up to a maximum of your TRI pay. The District holds your money, and will reimburse you for your expenses on a pre-tax basis. (See page 168 of your Agreement to see how much TRI you get.) 
• You pay the college or conference as you normally would. 
• You submit proof of payment to Human Resources. You may do so up to three times per year. Your last submission must be by July 15, 2013 in order to receive reimbursement on a pre-tax basis. 
• Any remaining funds withheld by the District will be PAID to you in your August pay, minus taxes. 

This Pre-Tax Tuition Reimbursement Program is part of our collective bargaining agreement, and will be in effect every year in the future, unless the contract changes or IRS rules change. It is Article 29 of the CBA, on page 77.