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Tuition Reimbursement Program: The Internal Revenue Service

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Tuition Reimbursement Program is a contract between the employer and the employee that summaries specific terms in which the employer may pay for the employee's continuing education. Usually, tuition cost is paid in advance by the employee and reimbursement is paid later by employer depending on the criteria of the company program. The Internal Revenue Service refers to the Tuition Reimbursement Program as an Educational Assistance Benefits which is tax-free up to $5,250 a year for tuition fees, books, supplies. But the student must attend a qualifying educational institution and maintain a “C” letter grade or higher (IRS, Publication 970, page 60 & 67).
Since the recession of 2007 when the economy declined and employment growth declined,

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