Do I have to pay tax on educational assistance?
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| A special tax rule allows an employee to exclude from gross
taxable income on his/her tax return
and from wages for employment tax purposes up to $5,250 annually paid by his or her
employer for educational assistance.
Only reimbursements
for undergraduate-level course work qualify for the educational assistance
exclusion from your tax return.
This tax law allows the employer to deduct
on it's tax return the cost of these educational assistance benefits and does not require
you to treat the payments as taxable income on your tax return.
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Related tax
information about educational assistance |
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Academic Scholarships
Education IRAs
Hope Tax Credit
Lifetime Learning Tax Credit
Qualified Tuition Programs
Student Loan Interest Tax
Deduction
U.S. Savings Bond Tuition Plans
Income Related Questions and Answers |
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IRS publications about educational assistance:
For additional information on educational assistance, scholarship and
fellowship grants, refer to Tax
Topic 421, and
IRS Publication 520,
Scholarships and Fellowships. For further information or higher
education refer
to
IRS Publication 970, Tax
Benefits for Higher Education;
IRS Publication 508, Educational
Expenses; and
IRS Publication
1577, Applying for Educational Financial Aid. Also see
IRS Publication 17, Your Federal
Income Tax. |
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Ask Julian Block your IRS and tax questions! |
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If you can't find the answer to your IRS or tax question in our
web you can call former IRS Special Agent and one of the country's foremost tax attorneys, nationally syndicated columnist ("The Tax
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