Tax Provisions

AJCU has worked extensively to maintain a number of tax provisions that have been important to our Jesuit institutions and to higher education throughout the years. By providing tax credits, deductions, and other benefits, primarily to middle class families, most of these provisions have assisted students and parents in offsetting the cost of higher education. Other provisions have benefited our institutions by incentivizing donations and by supporting research and development at our colleges and universities. For this reason, AJCU will continue to support the preservation of the following tax provisions:

Select Provision Described:

Those who receive educational assistance from an employer under an educational assistance program may exclude up to $5,250 of those benefits from their income tax return. Educational benefits, provided by employers, of greater than $5,250 will be taxable. However, none of these benefits can be used as the basis for any other deduction or credit, such as the American Opportunity Credit and the Lifetime Learning Credit.

Maximum Benefit: Educational employees benefits of up to $5,250 are not taxed

Fringe Benefits: If the benefits over $5,250 qualify as a working condition fringe benefit, then the beneficiary can deduct this remaining amount as an employee business expense.

Information from the IRS Publication 970, “Tax Benefits for Education.” More information can be found in the Publication.