Tax Break for Employer-Provided Graduate Tuition Assistance Set to Expire December 31

Section 127 of the Internal Revenue Code makes it possible for employers to provide up to $5,250 per year to their employees (not dependents) in tax-free tuition assistance for education as part of a “qualified educational assistance program.”   Section 127 is set to expire at the end of the year unless Congress takes action. The provision was established in 1978 and has been extended by Congress several times, most recently in 2010. Consider contacting your members of Congress to support a tax extenders package that extends employer-provided education assistance.  Click here to write or call your member of Congress.  Please note, section 127 specifically exempts tuition discounts for classes taken at the graduate level.  ACU’s undergraduate tuition benefit is already exempt from taxation under Section 117 of the Internal Revenue Code.   Read more about ACU’s Employee Tuition Benefit.