Tax-exemption for employer educational aid extended by Tax Relief Extension Act of 1999.
Employers can sometimes be a rich source of financial aid for workers.
Several thousand companies offer tuition assistance programs as a fringe benefit for employees who want to further their college studies. The tax treatment of these educational assistance programs is also generous. The tax-exemption was recently extended by Congress through the end of 2001. The tax-exemption, however, applies only to undergraduate courses. Despite the restriction on graduate-school courses, not all grad students will be stuck paying tax on their tuition assistance.