Newsletter Article
Member Benefit
Tax Relief for Tuition Reimbursement Made Permanent!
As part of The American Taxpayer Relief Act (HR 8), the legislation passed by Congress to avoid a “fiscal cliff” and maintain tax cuts and long-term unemployment benefits among other provisions, another piece of the bill is a big win for employers and employees. Section 127 of the IRS Code—employer-provided tuition assistance—is now a permanent part of the Code.
JH
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Thu Jan 17 2013
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Section 127 enables an employee to exclude from his or her income up to $5,250 per year in employer-provided tuition assistance for any type of educational course, undergraduate or graduate. Employers who use this benefit can deduct these costs as a business expense when determining their income tax liability.