I got Student Loan Repayment from the US Army in 2020. It came as a W-2, but can I still use that for the $5,250 Employer Student Loan Repayment in the CARES Act? How?

Forum|Forum|5 years ago
February 17, 2021
1 reply
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I feel like the W-2 money should be diminished by the $5,250. Is there any way to put that in the taxes? I asked DFAS and they said they didn't know.

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gloriah5200

In your scenario, it is not a tax-free payment and the employer is not using the CARES provision correctly, it is simply a taxable bonus that is included on your W-2 and you pay tax on.

In that case, since you paid your loans with after-tax money, you can use the student loan interest deduction.

But that scenario does not use the LRAP provisions of the CARES act.

For additional information refer to the following link:

Cares Act Student Loan Repayment by Employer

dskirvinAuthor

Thank you so much!

I got Student Loan Repayment from the US Army in 2020. It came as a W-2, but can I still use that for the $5,250 Employer Student Loan Repayment in the CARES Act? How?

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