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The Current Tax Status of Employer Education Assistance (CRS Report for Congress)

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Release Date Revised March 15, 2007
Report Number 97-243
Authors Linda Levine and Bob Lyke, Domestic Social Policy Division
Source Agency Congressional Research Service
Older Revisions
  • Premium   Jan. 14, 2005 (2 pages, $24.95) add
Summary:

Section 127 of the Internal Revenue Code allows up to $5,250 in tuitionreimbursements and other forms of employer education assistance (e.g., payments forbooks, supplies, and equipment) to be exempt from income and employment taxes evenif the education does not qualify as a deductible business expense. The tax exclusioncurrently applies to graduate as well as undergraduate courses and is extended throughDecember 31, 2010.