Summary of the Exclusion for Certain Employer Payments of Student Loans

Below is a summary of one of the provisions of Title II - Rebates and Other Individual Provisions and Business Provisions from the Coronavirus Aid, Relief and Economic Security Act (CARES Act).
 

Summary

• Employer’s payment of employee’s student loans given tax-free treatment for 2020.

Detailed Analysis

Employer Provided Student Loan Payments
An employer may make a payment of principal or interest before January 1, 2021 on any qualified education loan incurred by the employee and exclude that amount from the employee's gross income. The payment may be made to the employee or to the lender.

This publication is intended for general information purposes only and does not and is not intended to constitute legal advice. The reader should consult with legal counsel to determine how laws or decisions discussed herein apply to the reader’s specific circumstances.