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United StatesTax Credit

Section 127 Employer Educational Assistance

Internal Revenue Service (IRS)

What is this?

Tax-free reimbursement from your employer for tuition, fees, books, supplies, and equipment for any education (job-related not required). Through 2025 also covers student loan repayment.

Am I eligible?

Employees whose employer offers a qualified Section 127 educational assistance program. Available to any employee (no income limit). Through 2025, also covers principal/interest payments on qualified student loans.

Target audience:

employed

Eligible sectors:

general

What do I get?

Up to $5,250/year tax-free per employee

Benefit details may vary based on your eligibility and location.

How to apply

Ask your employer if they have a Section 127 program. If yes, follow their reimbursement process — benefits don't appear on your W-2 wages.

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