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February 20, 2021
Question

Employer-provided assistance

  • February 20, 2021
  • 1 reply
  • 0 views

My employer provides a children's tuition grant that covers some of the tuition costs for children of eligible employees. This year, the grant from my employer paid about $16,000 toward my daughter's college tuition expenses. This did not show up on my W2 form. Does I list this as "employer provided assistance" on my tax filings (under her education expenses section)? I'm unclear whether this refers to HER employer or MY employer. Thanks!

1 reply

ColeenD3
February 21, 2021

No, it is not your assistance.

 

What is dependent educational assistance?

Employees who receive employer-paid tuition assistance can exclude up to $5,250 of the benefit from federal income taxes each year, as long as certain qualifications are met. Tax-free education assistance is intended for the employee only and not their spouse or dependents.