What is the total tax-exempt amount for tuition assistance offered by employers?

The total tax-exempt amount for tuition assistance offered by employers is $5,250. This amount is derived from the Internal Revenue Code, which allows employers to provide tuition assistance to employees without those amounts being included in the employee's taxable income, provided the total does not exceed $5,250 in a calendar year. This tax-exempt benefit applies to various forms of educational assistance, including tuition, fees, and related expenses for courses taken by employees to improve job skills or acquire new ones related to their current job.

The significance of this limit is that it fosters an educational benefit for employees without imposing additional tax burdens, thus encouraging companies to invest in their employees' professional development. Employers can offer this assistance while maintaining the financial well-being of their employees by helping them advance their education and careers tax-free.