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.
Many life events can introduce financial stress. Guest contributor Madeline Cronin discusses how to deal with financial planning through various life stages.
If you love Halloween, did you know that there can be candy-related sales tax by state? Watch out for your Halloween spending with these facts from H&R Block.
Learn more about the tax benefits of college savings accounts like 529 plans and Coverdell ESAs with the experts at H&R Block.
Our Tax Pro’s at H&R Block have prepared expert tips to help guard your consumer data in honor of Tax Identity Theft Awareness Week. Visit our blog for more details.