Are education expenses paid by my employer taxable?
Yes, but not 100% of education expenses paid by your employer are considered taxable income for you. IRS guidelines say that up to $5,250 is nontaxable, while anything in excess of $5,250 is taxable.
For example, if Lulu’s employer paid $12,000 for her to get an MBA, $5,250 would be nontaxable, but the remaining $6,75 would be considered taxable income for Lulu.
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