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

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

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

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

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

McKinsey offers BAs both options

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

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.

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

I did it and know several others that have as well

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!