Q What are Employer Provided Education Expenses?
A The Employer Provided Educational Expenses, somewhat like a scholarship or fellowship, lets an employee exclude from income the value of educational benefits provided by an employer ? provided the education is related to employment duties, said certified public accountant Al Giovetti, who also serves as state director for the Maryland Society of Accountants.
The benefit can also count if it is part of an educational assistance program of the employer.
An employee can receive tax-free education under an educational assistance program up to $5,250 per calendar year, he said.
“Some of the areas the IRS is concerned about include children who are employees of parents or parents’ company who have no legitimate employer employee relationship,” Giovetti said.
