In general, job-related educational assistance benefits are not taxable, with the following clarifications:

Currently, no tax withholding is required on educational assistance benefits provided to employees up to a $5,250 limit during the calendar year.

Educational assistance benefits that exceed $5,250 (with the exception of certification and licensing exam reimbursements) are taxable unless they can be excluded as a "working condition fringe benefit."

If educational assistance benefits from the Partnership alone or combined with tuition assistance from other NYS agencies exceed $5,250, applicable income tax will be withheld from December paychecks. However, these exemptions can change from one tax year to another. Please speak to your accountant or tax advisor for further guidance.

Please contact a Partnership advisor at [email protected]g to determine the number of benefits used in a calendar year.