Can a company pay for an employee's MBA and receive a tax benefit from it?

Question:

I would like to propose a plan to my current employer to pay for my MBA. I would like to know whether there is any tax benefit for sponsoring an employee for a master's degree. With this information I can calculate how much it will really cost the organization.

Answer:
It is a tax deduction for the employer. Good luck getting them to do it though. Not alot of companies will do that. Usually they will pay for some training classes or some college courses that pertain to their industry, so that they can also get the benefit of your knowledge at their company.

it reduces their taxable income, perhaps you should sign a contract to work there for two years

The only tax benefit to the company would be that, if they offer education as a benefit to their employees, they can deduct it as an expense on their tax return. So, the savings would depend upon their tax rate.

To your benefit, the first $5250 of tuition that your company pays on your behalf is not considered to be taxable income to you.

There MAY be a state tax benefit to them, depending upon the state.

Other than that -- not much.

Can a company pay for an employee's MBA and receive a tax benefit from it?

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