Is job-related educational assistance taxable wages?

Author: Alice Gilman

No. Employer-provided education that is related to the employee's current job is excluded from income as a working condition fringe benefit, if all of the following conditions are met:

  • The employee does not need the education to meet the minimum requirements of the current job;
  • The education is not taken to qualify the employee for a promotion or transfer to a different type of work; and
  • The education must help maintain or improve the knowledge and skills required for the current job.

Employer-paid education provided to the employee because requirements of the current job have changed qualifies as a tax-free working condition fringe benefit.