Tuition Assistance Programs
Some employers offer education or tuition-assistance programs. These can be a valuable fringe benefit. You can exclude up to $5,250 of this education assistance from your income.
Typically, these are payments by an employer for your education expenses. The expenses can include but:
- Fees and similar payments
An educational assistance plan can also include employer-provided:
- Instructional courses
- Expenses like:
Educational assistance doesn’t include providing or paying for these items:
- Tools or supplies — other than textbooks — that you can keep after completing a course
- Meals or lodging
- Courses or other education involving sports, games, or hobbies — unless the course either:
- Relates to the employer’s business
- Is required as part of a degree program
Your total education benefits might be more than $5,250. If so, the exclusion applies to the first $5,250 in benefits you receive during the year.
Some employees receive education benefits not covered by this provision. So, you might be able to exclude them as job-related educational expenses. To qualify, the course must:
- Benefit the employer
- Apply to your job
- Be an undergraduate, graduate, or continuing professional education course
To learn more, see Publication 970: Tax Benefits for Education at www.irs.gov.
Is income from a scholarship or fellowship tax free? Learn more from the tax experts at H&R Block.
What does a productive summer mean to you? For many, it’s earning as much money as possible. For others, it translates into summer internships.
How does college financial aid affect your tax return? Learn how to report different types of financial aid and get tax answers at H&R Block.
Do you have to pay taxes on your student loans if they’ve been forgiven? Learn whether student loans are taxable and get tax answers at H&R Block.