Who should I ask to write a piece on why PhD programs even “charge” tuition they waive for virtually all students? I’m confused about why this particular part of the tax can’t be fixed by creative accounting. (“Tuition for doctoral students is now $0.”)
— Mike Madden (@MikeMadden) November 17, 2017
I am sure there would be some creative accounting to try to minimize the tax burden for students with tuition waivers, but once the IRS decides that a benefit is taxable... it is. You can't just say "this incredibly valuable thing we provide is actually free because we don't charge!!!" They'll find a way to put a number on it, and it will be taxable.
The IRS is very good at closing "loopholes" for the 99%.