Tax bill extends employer-provided tuition assistance

Does your company offer employees tax-favored educational benefits? If so, then the tax relief package signed by the President in December contains good news for you. The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (HR 4853, PL 111-312) contains a two-year extension of the tax-favored educational benefits available to employees under Section 127 of the Internal Revenue Code. Without this extension, Section 127 would have expired at the end of 2010. Section 127 provides an income tax exclusion for up to $5,250 per year in employer-provided educational benefits, such as tuition assistance for undergraduate and graduate level coursework. Questions? Contact your Vigilant staff representative, or your tax adviser.