My employer provides education benefits to its employees up to $5000 in a calendar year. Currently I’m enrolled in a masters program and taking advantage of this benefit, however my employer withholds 47% in taxes. According to the IRS document on”Employer-Provided Educational Assistance” (publication 970, pg33) the employer is not required to withhold taxes and it states that the benefit is tax free up to $5250.
Is there a way I can claim a deduction on my income tax that will allow me to reclaim some of this lost benefit?
