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February 15, 2023
Question

I received money from my employer for put towards my Student Loans through the CARES Act. It is tax free. Do I need to submit it on my taxes even though it is tax free?

  • February 15, 2023
  • 2 replies
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2 replies

February 15, 2023

How much did you receive? If you receive educational assistance benefits from your employer under an educational assistance program, you can exclude up to $5,250 of those benefits each year. This means your employer should not include the benefits with your wages, tips, and other compensation shown in box 1 of your Form W-2. irs.gov

Any amount reported on your w-2 box 14 is for your information only. Any taxable amount will be included in box 1 on your W-2. 

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Hal_Al
Employee
February 15, 2023

No. The CARES Act allows employers to pay up to $5,250 toward student loans on behalf of employees, tax free.  If your employer paid more  than $5250, the excess is already included in box 1 of your W-2.