[Code of Federal Regulations]
[Title 26, Volume 2]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.127-1]

[Page 541]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.127-1  Amounts received under a qualified educational assistance 
program.

    (a) Exclusion from gross income. The gross income of an employee 
does not include--
    (1) Amounts paid to, or on behalf of the employee under a qualified 
educational assistance program described in Sec. 1.127-2, or
    (2) The value of education provided to the employee under such a 
program.
    (b) Disallowance of excluded amounts as credit or deduction. Any 
amount excluded from the gross income of an employee under paragraph (a) 
of this section shall not be allowed as a credit or deduction to such 
employee under any other provision of this part.
    (c) Amounts received under a nonqualified program. Any amount 
received under an educational assistance program that is not a 
``qualified program'' described in Sec. 1.127-2 will not be excluded 
from gross income under paragraph (a) of this section. All or part of 
the amounts received under such a nonqualified program may, however, be 
excluded under section 117 or deducted under section 162 or section 212 
(as the case may be), if the requirements of such section are satisfied.
    (d) Definitions. For rules relating to the meaning of the terms 
``employee'' and ``employer'', see paragraph (h) of Sec. 1.127-2.
    (e) Effective date. This section is effective for taxable years of 
the employee beginning after December 31, 1978, and before January 1, 
1984.

[T.D. 7898, 48 FR 31017, July 6, 1983]