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ARTICLE · 17 JULY 2024

IRS Issues FAQs On Educational Assistance Programs

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On June 17, 2024, the IRS issued Fact Sheet 2024-22, which includes nine FAQs about educational assistance programs. The Fact Sheet also links to a sample program document for employers.

United StatesConsumer Protection
Kathryn Bjornstad Amin
Kathryn Bjornstad Amin
David Block
David Block
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On June 17, 2024, the IRS issued Fact Sheet 2024-22, which includes nine FAQs about educational assistance programs. The Fact Sheet also links to a sample program document for employers.

As background, Code section 127 educational assistance programs are separate, written employer-sponsored programs under which employers can provide up to $5,250 in tax-free qualified educational benefits per year to employees. Examples of permissible educational benefits include payments for tuition, fees and similar expenses, books, supplies and equipment. Additionally, through the end of 2025, permissible educational benefits include principal and interest payments on qualified education loans ("Student Loans").

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