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Question: Why does McKinsey pay MBA tuition directly to the university whereas Deloitte repays the employee, resulting in significant taxable income?

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My guess would be because Deloitte won't repay until you have gone back and worked for the firm (half the tuition each year)

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Bc McK sends everyone to Harvard and it's expensive brah! no I'm just kidding - I don't know why

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Does paying directly to the school really avoid taxation on the income?

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Because at the end of the day Deloitte is an accounting firm. They know how to work the tax rules 😊

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McKinsey offers BAs both options

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I used NTAP and mine was not taxed. Thanks to my Talent POC for looking out.

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NTAP is the program for people who want to continue working during grad school. The firm pays up to $10K per year toward your program immediately and you have to stay for 2 years or owe it back.

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You can write off tuition as long as you need the educational component to continue your career

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I did it and know several others that have as well

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Might have smth to do with Deloitte being an accounting firm too? Who knows

Sounds like you should have to pay income tax on benefits over $5250. Maybe there's something I'm missing. https://www.irs.gov/publications/p970/ch11.html

I thought you could deduct tuition payments? I thought that was a question on your federal return

What is NTAP!?

Accenture grosses up tuition reimbursement

EY does the same (direct to school)

It seems tuition deductions max out at $4000 and are income limited. https://www.irs.gov/publications/p970/ch06.html

That doesn't work for MBA... 😞

What NTAP? It does... I got an MBA...

Did you continue working during your MBA? 😳

Yes!

Additional Posts

This might be a dumb question but are you allowed to disclose who your clients are in an interview? E.g., if you worked on matters for a Fortune 500, can you name that company in your interview?

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Rawr and thank you. 🦁🐯

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