Which amount represents the maximum allowable education assistance provided by employers?

The maximum allowable education assistance that employers can provide to employees, tax-free to the employee, is $5,250 per year. This amount is outlined in the Internal Revenue Code, specifically under Section 127, which allows employers to offer educational assistance benefits without subjecting those benefits to income or payroll taxes for the employee, as long as the total benefits do not exceed this threshold.

Providing education assistance is not only beneficial for employees pursuing further education, but it also serves as a valuable tool for employers to enhance employee skills and job performance. The $5,250 limit applies to various educational expenses, including tuition, fees, and supplies, making it a versatile option for both parties involved. The amounts listed in the other options exceed this established limit, making them ineligible for tax-free status under current IRS regulations.