An employer-provided education or tuition assistance program can be a valuable fringe benefit. By law, you can exclude up to $5,250 of employer-provided education assistance from your income.

Educational assistance is the payment by an employer of education expenses incurred by an employee. It includes, but isn’t limited to:

• Tuition
• Fees and similar payments
• Books
• Supplies
• Equipment

An educational assistance plan can also include employer-provided instructional courses and expenses, like:

• Books
• Supplies
• Equipment

Educational assistance doesn't include providing or paying for these items:

• Tools or supplies -- other than textbooks -- that the employee can keep after completing a course
• Meals or lodging
• Transportation
• Courses or other education involving sports, games, or hobbies -- unless 1 of these apply to a course:
  • Relates to the employer's business
  • Is required as part of a degree program

Your total educational benefits might be more than $5,250 . If so, the exclusion applies to the first $5,250 in benefits you receive during the year.

If you received education benefits not covered by this provision, you might be able to exclude them as job-related educational expenses. To qualify, the course must benefit the employer and apply to your job. It also must be an undergraduate, graduate, or continuing professional education course.

To learn more, see IRS Publication 970: Tax Benefits for Education.