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Tax Credit for Financial Assistance Toward Employee's Student Loan Debt Thumbnail

Tax Credit for Financial Assistance Toward Employee's Student Loan Debt

Taxes Small & Medium-sized Business

Did you know that the CARES Act allows employers to claim a tax credit when providing financial assistance toward an employee’s existing student loan debt?

Under the expanded tax-free student loan repayment benefits, employers can pay up to $5,250 toward employee education costs or toward their student loan debt. Employers can take advantage of the credit for any loan payments made on or after the act took effect and before Jan. 2, 2021. Unfortunately, children & spouses are specifically excluded.

Want to learn about some innovative programs that allow government and nonprofit entities to make student loan payments, on behalf of employees, tax-free as well? Let's talk!

Best, 

Gary