Tax Treatment of Employer Educational Assistance for the Benefit of Employees

Description:

Educational assistance offered by employers to their employees may be exempt from federal income tax under Section 127 and Section 132 of the Internal Revenue Code. Section 127 is the employer educational assistance exclusion; Section 132, the fringe benefit exclusion for working condition benefits (e.g., job-related eduction) among other benefits. Congress established the two tax provisions well before it enacted to her higher education tax benefits meant to assist taxpayers, their spouses, and dependents -- regardless of employment status -- pay current educational expenses incurred while obtaining postsecondary degrees and undertaking lifelong learning.

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Creation Date: July 3, 2008
Partner(s):
UNT Libraries Government Documents Department
Collection(s):
Congressional Research Service Reports
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Place of Publication: Washington, D.C.
Date(s):
  • Creation: July 3, 2008
  • : August 1, 2008
Description:

Educational assistance offered by employers to their employees may be exempt from federal income tax under Section 127 and Section 132 of the Internal Revenue Code. Section 127 is the employer educational assistance exclusion; Section 132, the fringe benefit exclusion for working condition benefits (e.g., job-related eduction) among other benefits. Congress established the two tax provisions well before it enacted to her higher education tax benefits meant to assist taxpayers, their spouses, and dependents -- regardless of employment status -- pay current educational expenses incurred while obtaining postsecondary degrees and undertaking lifelong learning.

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Partner:
UNT Libraries Government Documents Department
Collection:
Congressional Research Service Reports
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Resource Type: Report
Format: Text