The Internal Revenue Service in Washington on Jan. 6, 2026. Madalina Kilroy/The Epoch TimesU.S. employees can continue to receive up to $5,250 in tax-free educational assistance from their employers for calendar years 2025 and 2026, the IRS said in an April 20 update.Section 127 educational assistance programs allow employers to provide financial assistance to their employees for education programs. The $5,250 in tax-free assistance was scheduled to expire last year, but the One Big Beautiful Bill Act made this provision permanent.
$5,250 Tax-Free Educational Assistance Extended to 20252026: IRS
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