$๐Ÿ“,๐Ÿ๐Ÿ“๐ŸŽ ๐“๐€๐— -๐…๐‘๐„๐„ ๐‡๐„๐‹๐ ๐Ÿ๐จ๐ซ ๐„๐Œ๐๐‹๐Ž๐˜๐„๐„ ๐’๐“๐”๐ƒ๐„๐๐“ ๐‹๐Ž๐€๐๐’ & ๐š๐ง ๐„๐Œ๐๐‹๐Ž๐˜๐„๐‘ ๐ƒ๐„๐ƒ๐”๐‚๐“๐ˆ๐Ž๐ (๐Ÿ”/๐Ÿ๐Ÿ/๐Ÿ๐ŸŽ๐Ÿ๐ŸŽ)

This provision of the CARES Act went somewhat unheralded but itโ€™s very favorable.

Specifically, if you receive educational assistance benefits (like cash) from your employer under an educational assistance program, you can exclude up to $5,250 of those benefits from income each year. This means your employer doesnโ€™t include the benefits in your wages, tips, and other compensation shown in box 1 of your Form W-2.

AND the employer can deduct the assistance as a trade or business expense.

For more info, see Exclusion for Certain Employer Payments of Student Loans (sec. 2206 of the Act and secs. 127, 3121, 3306, and 3401 of the Code), page 26 of the Description of the Tax Provisions Of Public Law 116-136, The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act (JCX-12R-20, April 23, 2020. Download at https://www.jct.gov/publications.html

If you need help, contact us at https://tjcarroll-law.com/contact/

๐“๐ก๐จ๐ฆ๐š๐ฌ ๐‰๐š๐ฆ๐ž๐ฌ ๐‚๐š๐ซ๐ซ๐จ๐ฅ๐ฅ, ๐.๐‚. ๐ข๐ฌ ๐š ๐ฅ๐š๐ฐ ๐Ÿ๐ข๐ซ๐ฆ ๐Ÿ๐จ๐œ๐ฎ๐ฌ๐ข๐ง๐  ๐จ๐ง ๐Ÿ๐ž๐๐ž๐ซ๐š๐ฅ ๐š๐ง๐ ๐ฌ๐ญ๐š๐ญ๐ž ๐ญ๐š๐ฑ๐ž๐ฌ ๐ญ๐ก๐š๐ญ ๐ฉ๐ซ๐จ๐ฏ๐ข๐๐ž๐ฌ ๐ข๐ง๐๐ข๐ฏ๐ข๐๐ฎ๐š๐ฅ๐ฌ ๐š๐ง๐ ๐›๐ฎ๐ฌ๐ข๐ง๐ž๐ฌ๐ฌ๐ž๐ฌ ๐ฐ๐ข๐ญ๐ก ๐ญ๐š๐ฑ ๐ก๐ž๐ฅ๐ฉ ๐š๐ง๐ ๐ฌ๐จ๐ฅ๐ฎ๐ญ๐ข๐จ๐ง๐ฌ ๐Ÿ๐จ๐ซ ๐ญ๐จ๐๐š๐ฒ ๐š๐ง๐ ๐ญ๐จ๐ฆ๐จ๐ซ๐ซ๐จ๐ฐ.

๐Ž๐ฏ๐ž๐ซ ๐Ÿ‘๐ŸŽ ๐˜๐ž๐š๐ซ๐ฌ ๐จ๐Ÿ ๐„๐ฑ๐ฉ๐ž๐ซ๐ข๐ž๐ง๐œ๐ž ๐ข๐ง ๐ˆ๐‘๐’, ๐๐˜ & ๐๐‰ ๐“๐š๐ฑ ๐€๐ฎ๐๐ข๐ญ๐ฌ, ๐€๐ฉ๐ฉ๐ž๐š๐ฅ๐ฌ & ๐“๐š๐ฑ ๐๐ฅ๐š๐ง๐ง๐ข๐ง๐ .

๐–๐–๐–.๐“๐‰๐‚๐€๐‘๐‘๐Ž๐‹๐‹-๐‹๐€๐–.๐‚๐Ž๐Œ