What is the exclusion limit for education assistance from taxable income?

The exclusion limit for education assistance from taxable income is indeed set at $5,250. This amount represents the maximum that an employer can provide in education benefits to employees without those benefits being subject to federal income tax. This provision is part of the Internal Revenue Code Section 127, which allows for tax-free employer-provided education assistance for a variety of educational expenses, including tuition, fees, and course materials.

This limit is important because it incentivizes employers to support their employees' educational development while ensuring that employees do not incur a tax burden for benefits received within this limit. Amounts provided above $5,250 are considered taxable income and can impact the overall taxable income of the employee.