Amends the Internal Revenue Code to extend for two years, until December 31, 1985, the income tax exclusion for amounts received by an employee under an educational assistance program. Limits the exclusion to $5,000 of educational assistance furnished to an individual during a calendar year.
Provides that the exclusion from gross income for income and employment taxes for qualified tuition reductions is extended to apply to education furnished to graduate students who are employees of certain educational institutions and who perform teaching or research activities for the educational institution.
Requires any employer maintaining an educational assistance plan or a cafeteria plan to file an information return with respect to the plan as required by the Secretary of the Treasury. Requires an employer maintaining such a plan to keep records to demonstrate that the plan meets all legal requirements. Provides that the Secretary may require employers to file an additional return for any year in addition to the information return. Provides that benefits received from an educational assistance program shall be excluded from the wage base for purposes of railroad retirement taxes.
Directs the Secretary to conduct a study and report to specified congressional committees on the effect of the exclusion of amounts received under educational assistance programs.