Members of the Maryland Association of Certified Public Accountants are answering readers' tax questions through April 15.

My employer pays private school tuition for my child as part of my benefits package. It is not reported on my W-2. Is this taxable? If so, how do I report it?

The private school tuition is taxable as compensation. Your employer should issue an amended W-2, including the tuition as additional compensation. Otherwise the amount should be reported as other income on Line 21 of Form 1040, as well as on Line 2 of Schedule SE.

Gabriel Massuda, CPA, Reznick, Fedder & Silverman

The above advice is for general purposes only and is not intended as legal, accounting or tax advice. Specific situations may vary.

To ask a tax question, call Sundial, The Sun's telephone information service, at 410-783-1800. Call 410-268-7736 in Anne Arundel County, 410-836-5028 in Harford County, 410-848-0338 in Carroll County. Using a Touch-Tone phone, punch in the four-digit code 6225 after the greeting. To submit questions by e-mail and access an online tax guide, go to The Sun's Web site at www.sunspot.net/tax.

Selected questions will be answered in the Business section. No questions will be answered personally.

Pub Date: 3/31/99