Employer-Provided Educational Assistance

Employers may provide up to $5,250 of tax-free educational benefits annually for each employee for undergraduate or graduate coursework, regardless of whether the education is job-related. Neither the Hope Scholarship nor the Lifetime Learning tax credits may be claimed by the employee for the year that the student receives Employee-Provided Educational Assistance.

Employers offering tax-free educational assistance are required to have a written plan describing the benefit and the terms under which it is available. Check with your employer to find out if this benefit is available at your workplace.