IRS Clarifies Policies on Tax-Free Educational Assistance Benefits

An employee may exclude up to $5,250 from gross income per calendar year.
IRS Clarifies Policies on Tax-Free Educational Assistance Benefits
Graduates attend a graduation ceremony at a UK university, on July 16, 2008. Chris Ison/PA Media
Bill Pan
Updated:
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The Internal Revenue Service (IRS) has clarified regulations regarding the tax-free educational assistance that employees receive from their employers.

In guidance published on June 17, the federal tax agency answered frequently asked questions pertaining to Section 127 of the Tax Code, which allows taxpayers to exclude certain educational assistance benefits from their gross income if they’re provided under an educational assistance program.
Bill Pan
Bill Pan
Reporter
Bill Pan is an Epoch Times reporter covering education issues and New York news.