Templates and talking points to request CPA exam reimbursement from your employer. Sources: IRS Publication 970, IRS Section 127.
Many accounting firms and corporate employers reimburse CPA exam costs — including exam fees, study materials, and review courses. The issue is not usually that the policy does not exist. It is that employees do not ask, or do not know how to frame the request.
IRS Section 127 allows employers to provide up to $5,250 per year in tax-free educational assistance to employees. This means your employer can reimburse your CPA exam costs without either of you paying income tax on the benefit — up to the annual cap.
Copy and customize this template. Replace bracketed fields with your specific details.
IRS Section 127 — Tax-Free Benefit
Employer-provided educational assistance is tax-free for both the employer and the employee up to $5,250 per calendar year (IRS Section 127). This includes tuition, fees, books, supplies, and equipment. CPA exam fees and study materials qualify.
Firm Investment, Not a Cost
CPAs generate higher billing rates, can sign audit opinions, and qualify for roles that require licensure. The firm's return on a $500-1,000 exam reimbursement is measured in years of increased capacity.
Retention Signal
Firms that invest in professional development retain staff longer. Reimbursement signals that the firm is invested in your career trajectory — and you are invested in staying.
Industry Standard
Most Big 4, national, and large regional firms reimburse CPA exam costs as standard policy. If your firm does not have a formal program, you may be establishing a precedent that benefits future employees.
| Policy Type | How It Works |
|---|---|
| Full reimbursement | Firm pays exam fees + study materials upon passing. Some reimburse regardless of pass/fail. |
| Pass bonus | One-time bonus ($2,000-10,000) upon earning the CPA credential. Separate from exam cost reimbursement. |
| Tuition assistance | General educational assistance program (Section 127). Submit receipts for reimbursement up to $5,250/year. |
| Study time allowance | Paid time off or reduced hours during exam preparation windows. Often 2-4 weeks before the exam. |
If your firm does not have a formal policy, the template email above works as a first step. Many firms will accommodate the request even without a written program.
Annual limit: $5,250 per calendar year, per employee.
Qualifying expenses: Tuition, fees, books, supplies, and equipment. CPA exam registration fees and study materials qualify.
Tax treatment: Excluded from employee gross income. Not subject to federal income tax, Social Security, or Medicare tax for the employee.
Employer requirement: Must have a written educational assistance program (EAP) that meets IRS requirements. Many firms already have one.
Source: IRS Publication 970, Chapter 11. IRS Code Section 127.
Want to see where you stand? Take the free 7-minute diagnostic.
Start the Free DiagnosticAlready taken the diagnostic? See the full FAR system →