Answer: The tax-free treatment of benefitsprovided under educational assistance programs will be extended for 18 monthsunder a bill just passed by Congress and sent to the President.
An educationalassistance program is an employer-sponsored plan under which the employer paysfor the educational expenses of its employees. Under current law, employers mayprovide employees with tax-free educational assistance of up to $5,250 per yearin order to attend undergraduate courses that begin before June 1, 2000.
The employer automaticallytreats the educational assistance as a tax-free benefit and does not include itas wages on the employee's W-2 Form.
If the bill is signedinto law, as expected, the exclusion from gross income for benefits providedunder employer educational assistance programs would be extended
Cite: H.R. 1180, the Ticketto Work and Work Incentives Act of 1999.
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