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Level 2
October 10, 2023
Question

Tuition reimbursement for S-corp owner

  • October 10, 2023
  • 2 replies
  • 7 views

Can s-corp (LLC) pay or reimburse the tuition for employee, S-corp shareholder with over 20% ownership and deduct the expenses on tax returns?

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2 replies

IRonMaN
Level 15
October 10, 2023

It sure doesn’t sound legit, does it?  Is the owner getting a fancy new degree to get out of the business he is in or did he take some classes to help run his business better?

Slava Ukraini!
Level 15
October 10, 2023

Check out the section for "educational assistance programs" in Publication 15b or §127(b)(3).

https://www.irs.gov/publications/p15b#en_US_2023_publink1000193668

https://www.law.cornell.edu/uscode/text/26/127