What you need to know about IRS requirements for employer-sponsored tuition assistance or educational assistance programs. (Photo: Shutterstock)

Under Internal Revenue Code section 127, an employee may generally exclude from income amounts received pursuant to an employer-sponsored tuition assistance or educational assistance program (EAP) that was established in order to fund employee education-related expenses, subject to the maximum limitation discussed below.

Related: Tax-advantaged benefit programs prominent in tax season


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