An employee educational assistance program belongs on Line 14, employee benefit programs.
Why line 14
Tuition and course costs you pay for employees under a written educational assistance program are an employee benefit program on line 14. Where the education is directly related to the employee's current job and you pay it with no formal plan, it is instead an ordinary training cost in other expenses, so the plan document decides the line. Your own continuing education is never a line 14 item because line 14 covers employees only.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so an employee educational assistance program lands on Line 14 without you sorting it.
Start for freeWhat an employee educational assistance program is confused with
- Line 27a, other expenses
- Your own work-related training, and employee training paid outside a written plan, are ordinary other expenses on line 27a rather than a benefit program.
- Line 26, wages
- Education that is neither job-related nor covered by a qualifying written plan is taxable pay for the employee and lands in wages on line 26.
Examples that belong on line 14
- $2,400 of community college tuition for a W-2 assistant under a written plan
- A $900 online course and exam fee for an employee pursuing a bookkeeping certificate
- Textbooks and software required by an employee's degree program under the plan
- Student loan help for an employee where the written plan provides for it
What does not belong here
- Your own degree program, which is not an employee benefit and may not be deductible at all if it qualifies you for a new trade
- Course costs for a 1099 contractor, which are the contractor's own expense
- Amounts above what the written plan covers, which become taxable wages
The limit that applies
A qualifying written plan caps the amount an employee can exclude each year; anything above that is taxable to the employee and reported as wages.
What to keep
Keep the written plan, enrollment and invoice records for each employee, and proof you paid the school or the employee.
Other expenses on line 14
| Expense | Line |
|---|---|
| an employee wellness or gym benefit | Schedule C, Line 14 |
| dependent care assistance for employees | Schedule C, Line 14 |
| employee health insurance premiums | Schedule C, Line 14 |
| group term life insurance for employees | Schedule C, Line 14 |
| HSA contributions for employees | Schedule C, Line 14 |
Related lookups
Sources
- Instructions for Schedule C (Form 1040)
- Publication 15-B, Employer's Tax Guide to Fringe Benefits
- Tax Topic 513, Work-Related Education Expenses
This page explains how Schedule C lines work. It is general information, not tax advice for your situation. If an expense is large or the answer turns on a fact about your business, confirm it with your tax preparer.
Looking for a different expense? The full Schedule C line lookup has every line from 8 to 27 with the expenses that belong on each, and Schedule C expense categories walks the whole form in order.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so an employee educational assistance program lands on Line 14 without you sorting it.
Start for free