In conjunction with the rising demand for higher education in the United States, the cost of attending a postsecondary institution has increased significantly.
Continue readingLowering Education Expenses with Tax Credits and Deductions
A Better Way to Help with Tuition
To avoid tax implications on gifts over the exclusion (or to preserve the exclusion for other gifts), you can pay tuition directly to the school.
Continue readingEducational Benefit: An Benefit with Magnetic Power
Employers seeking to attract new recruits and retain talent should consider offering educational assistance programs to their employees. The plans aren’t new, but they temporarily offer greater flexibility in how they work.
Through Dec. 31, 2025, the funds can be used to help employees pay their federal student loan debts. According to the U.S. Dept. of Education, the average borrower in 2024 has federal student loan debt of $37,850. Student loan payments can be made directly to employees or lenders. These tax-free benefits are limited to $5,250 per employee, per year. Benefits that exceed that amount are taxable as wages.
If your company doesn’t offer an educational assistance program benefit, it might be a good idea to consider establishing one while this additional feature is still in force. In today’s tight labor market, fringe benefits like this one may be a magnet that gives your company an advantage. To learn more about adding this program to your benefit package: https://www.irs.gov/newsroom/employer-offered-educational-assistance-programs-can-help-pay-for-college