Other Education Incentives in 1997 Tax Act

Other Education Incentives in 1997 Tax Act

State university prepaid tuition programs

Employer-provided educational assistance

State university prepaid tuition programs

Increases scope of this existing program

Under the program, earnings associated with prepaid tuition programs have been and will continue to be tax free

Now earnings can be used for tuition, books, fees and room and board

Room and board expenses are a new addition

Employer-provided educational assistance

Employee not subject to income tax on up to $5,250 of educational assistance provided by employer

Exclusion previously expired June 30, 1997

1997 tax act extends exclusion through May 31, 2000

Exclusion remains limited to undergraduate study