Asked by Angelina Herrera on Apr 28, 2024
Verified
Employers can reimburse employees for up to ________ per year of educational assistance,whether or not job-related.
A) $5,250
B) $5,150
C) $5,000
D) $5,520
Educational Assistance
Programs or benefits provided by employers to cover employee educational expenses, potentially excluding some from taxable income.
Reimburse Employees
The process by which employers pay back employees for expenditures made on behalf of the company, often including travel expenses, supplies, and other work-related costs.
- Understand the taxation effects related to employer-offered benefits and reimbursements.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
A
Explanation :
The IRS allows employers to provide tax-free educational assistance of up to $5,250 per year to an employee, regardless of whether the education is job-related or not. This amount can exclude tuition fees, books, equipment, and supplies. Hence, option A is the correct answer.
Learning Objectives
- Understand the taxation effects related to employer-offered benefits and reimbursements.