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Show Provided education taxable OGDEN After September 30, 1990, employees who received educational assistance from their employers may have to include the assistance as income in-come on their 1990 tax return. Previously, educational assistance up to $5,250 was automatically excluded from employees' income. After the expiration date, employer-provided educational assistance must be included in an employee's income unless it is considered an ordinary and necessary business busi-ness expense for that trade or business. Generally, educational assistance need not be included includ-ed in income if the same education paid by the employee would be deductible as an ordinary and necessary employee business expense. Deductible employment-related educational ex penses: maintain or improve skills required by an employee in his or her present work or are required by the employer to maintain the employee's salary, status or job. Employees should always check with their employers on how to handle educational assistance for tax purposes. Some employers offer an educational assistance plan that is part of a larger package of fringe benefits. The tax status of educational assistance under these plans may differ. For more information on employer-provided educational educa-tional assistance, call 1-800-829-3676 (1-800-TAX-FORM) to order IRS Publication 508, Educational Expenses, Ex-penses, and IRS Publication 525, Taxable and Nontaxable Nontax-able Income. |