Company-provided sponsorship is usually tax-free, which benefits theEE.Companies may choose to provide educational assistance under Section 132(d), Working Condition Fringe Benefits, because no written plan is required and there is no dollar limit on expenses, or because it fits their employees' education needs. Under Section 132(d) ERs can offer a tax-free working condition fringe benefit for any expense EEs can deduct on their own tax returns under IRC section 162. it can also include education that maintains or improves job skills or meets requirements for the EE to remain in his or her current position.
Excludable education expense as a Working Condition Benefit must be related to the EE's current job and must help maintain or improve the knowledge of skill required for the job.
However, even if the education meets one or both of the above tests, it is not qualifying education if it:
•Is needed to meet the minimum educational requirements of the EE's present trade or business, or
•Is part of a program of study that will qualify the EE for a new trade or business.
ERs CAN OFFER a tax-free working condition fringe benefit for any expense EEscan deduct on their own tax returns under IRC section 162. This typically includes education that maintains or improves job skills or meets requirements for the EE to remain in his or her current position.
The IRS Pub 970, Tax Benefits for Education, provides examples and tests to help determine whether the education qualifies as a working condition benefit. I guess you can contact your ER/HR dept for mor einfo in detail
Publication]Publication]Publication 970 (2011), Tax Benefits for Education 970 (2011), Tax Benefits for Education 970 (2011), Tax Benefits for Education