Sec. 404. Educational assistance exclusion from gross income increased
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Section 127(b)(2) of the Internal Revenue Code of 1986 is amended to read as follows: If but for this paragraph, this section would exclude from gross income more than the maximum amount of educational assistance furnished to an individual during a calendar year, this section shall apply only to the maximum amount of such assistance so furnished. For purposes of subparagraph (B), the term maximum amount means, for any calendar year, an amount equal to the applicable dollar amount for elective deferrals described in section 402(g)(1)(B) (as such amount is adjusted for inflation for such calendar year). .
The amendment made by this section shall apply to educational assistance furnished in taxable years beginning after December 31, 2020.