Tax Treatment of Employer Educational Assistance for the Benefit of Employees

Levine, Linda

Library of Congress. Congressional Research Service.

关键词: Labor;    Employee assistance programs;    Higher education;    Taxation;    Tax policy;   

RP-ID  :  RS22911
RP-ID  :  RS22911_2008Jul03

美国|英语

来源: UNT Digital Library

【 摘 要 】

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.