1 result for tag: Maintenance or improvement of skills


If I Hire My Kids, Can I Give Them Tax-Free Education Benefits?

Yes! Potentially, in two different ways. Here’s how. Payments for Job-Related Education Your business can reimburse an employee for certain education expenses, and the reimbursements will be treated as tax-favored working condition fringe benefit payments. For the employee, that means the reimbursements are free of any federal income tax hit or federal employment tax hit. Nice! For your business, that means the reimbursements are deductible as employee compensation expenses. Also nice! This favorable federal tax treatment is generally allowed if The education is required by your business, or by law or regulation, for the ...