Can I Exclude Employer Tuition Assistance from My Income?

Yes — under Section 127, employers can provide up to $5,250 per year in educational assistance tax-free to employees. This can cover tuition, fees, books, and supplies for undergraduate or graduate courses — and it doesn't have to be job-related. The exclusion also applies to employer payments on student loans (extended through 2025 under current law). Anything above $5,250 is included in your taxable wages. If your employer has an educational assistance plan, it's worth checking what expenses qualify — this is a tax-free benefit that doesn't require you to itemize. You cannot claim education credits for the same expenses covered by tax-free employer assistance.