Educational Assistance This section provides basic tax information about educationalassistance programs. Educational assistance program.An educational assistance program is a separate written plan thatprovides educational assistance only to your employees. The programqualifies only if all of the following tests are met. The program benefits employees who qualify under rules setup by you that do not favor highly compensated employees (as definedin chapter 4under Exclusion of Certain Fringe Benefits).To determine whether your program meets this test, do not consideremployees excluded from your program who are covered by a collectivebargaining agreement if there is evidence that educational assistancewas a subject of good-faith bargaining. The program does not provide more than 5% of its benefitsduring the year for shareholders or owners. A shareholder or owner issomeone who owns (on any day of the year) more than 5% of the stock orof the capital or profits interest of your business. Faro hotel roomsThe program does not allow employees to choose to receivecash or other benefits that must be included in gross income insteadof educational assistance. You give reasonable notice of the program to eligibleemployees. Your program can cover former employees if their employment isthe reason for the coverage. Educational assistance defined.Educational assistance means amounts you pay or incur for youremployees' education expenses. These expenses generally include thecost of books, equipment, fees, supplies, and tuition. However, theseexpenses do not include the cost of graduate-level courses of a kindnormally taken by a person pursuing a program leading to an advancedacademic or professional degree. Also, these expenses do not includethe cost of a course or other education involving sports, games, orhobbies, unless the education: Alojamiento descontado BesenovaHas a reasonable relationship to your business, or Edinburgh hotelsIs required as part of a degree program. Education expenses do not include the cost of tools or supplies(other than textbooks) that your employee is allowed to keep at theend of the course. Nor do they include the cost of lodging, meals, ortransportation. Exclusion from wages.You can exclude a limited amount of benefits you provide to anemployee under an educational assistance program from the employee'swages as you withhold, pay, and report employment taxes. Exclusion limit.You can exclude from an employee's wages up to $5,250 ofeducational assistance each year. Assistance over the limit.If you provide an employee with more than $5,250 of educationalassistance during the year, you may be able to exclude part or all ofthe excess as a working condition fringe benefit. See chapter 4. Expiration date.This exclusion will not apply to expenses paid for coursesbeginning after May 31, 2000. Caution: As this publication was being prepared for print, Congress wasconsidering legislation that would extend the expiration date of theeducational assistance exclusion. For more information about this andother important tax changes, see Publication 553, Highlights of1999 Tax Changes.