Employer Provided Educational Assistance
Employers have a vested interest in your commitment to education. Many employers offer benefits to you just for furthering your education. Your employer invests in you so that you, in turn, can use your skills to improve their organization. Whether you want to go back to school to complete your undergraduate degree or take the time to work on a graduate degree, your employer may have benefits to assist you in paying for your degree. Read on to see what benefits your employer may offer to assist you in your pursuit of higher education.
Qualified Educational Expenses
Your educational assistance from your employer can cover a variety of expenses. For example, you can use the money to cover tuition, fees, books, supplies and equipment. Your employer might even provide funds for your graduate studies. However, there are some expenses that are not covered. You cannot use the money for meals, lodging or transportation. To find out exactly what is covered and what is not, check with you human resources department. They will be able to assist you in applying for whatever programs your job offers and explain to you what expenses are fully covered.
Assistance for Improving Career Skills
Is there a particular skill that would help you perform your job function a little better? Is there a skill that you need to brush up on? Or, is there a new skill that you’d like to acquire? Developing your career skills is definitely an advantage for you. You don’t have to be enrolled in a degree program to get educational assistance from your employer. A certificate program may qualify, too. Being certified in a particular area might make you more marketable and help you achieve that long-awaited promotion! Developing your skills will give you an edge in a very competitive job market.
Assistance for Earning a Higher Degree
Have you thought about taking your education to the next level and getting an advanced degree? Have you thought about completing your Bachelors degree or working towards your Masters degree? Or maybe you have your Masters and have always considered getting your Doctorate degree? Has the cost of going back to school been the deterrent? Don’t let the cost stop you. Your employer may be able to help defer some of the cost. You can use educational assistance programs offered through your employer to earn the higher degree that you’ve always wanted. If you use your employer’s educational assistance, there may be some stipulations that you have to adhere to in the future. Check with your supervisor or human resources department to learn more.
Limitations on Amounts
It would be great if your employer could pay for all of your expenses. But, unfortunately, there are some limitations to how much your employer can provide to help you cover your educational costs. Your employer can provide up to $5,250 each year. If your employer provides more than $5,250, you may have to pay taxes on the amount over $5,250. It’s important to keep accurate records of your expenses so that you’ll have them at tax time.
Also, if your employer provides you with educational assistance, you cannot claim the HOPE Scholarship tax credit or the Lifetime Learning Credit during the same tax year. So make sure you understand the limits and take whichever credit is best for you financially.