In the IR-2024-167, the IRS shares the Frequently Asked Questions and general guidance on how the employee’s w2 will not reflect any additional compensation for educational assistance programs with benefits of up to $5,250 if there is a section 127 program at your employer.
This is an excellent way to have the employer pay for some of your education (i.e. tuition) or payments of principal or interest on qualified education loans. Victor Garrido, CPA, EA used this program when working in Big4 to pay for his tuition expenses for required accounting credits required to obtain the Certified Public Accountant license. You can even use this assistance program up to the maximum $5,250 for several years (note that any unused balance cannot be rolled forward).
IRS Link IR-2024-167 – Treasury, IRS issue frequently asked questions regarding educational assistance programs
IRS FAQ Educational Assistance program – Frequently asked questions Q1 to Q9
