What if your employer over-taxes your amount for the educational assistance benefit? Example: taxed to the max for 6k student loan payment.

[oneal-sheila3]

Current law says only the amount over $5,250 should be taxed, therefore, a $6K payment should only be taxed at $750 (the delta). How do you get the money back on your taxes?  

[SweetieJean]

What do you mean by overtaxed?  Are you saying the employer withheld excess taxes?  And did you use that benefit to repay student loans rather than on tuition, etc?

[oneal-sheila3]

Meaning they are taxing the 6k like it is income. They are sending a check directly to my lender, but not portioning the amounts out, like IRS says. 

[SweetieJean]

Also, please clarify your situation. You talk about an employer, but you are asking from TT Self-Employed.

[Hal_Al]

Q.  How do you get the money back on your taxes?  

A. You talk to your employer.

There's is nothing you can do, to correct that,  in the filing of your tax return.  The employer's plan must meet IRS requirements (section 127). Then the employer treats it as a tax free benefit on your W-2. 

https://thecollegeinvestor.com/33583/employer-student-loan-assistance-tax-free/#:~:text=Section%2022....

Also note the $5250 limit applies to combined tuition and loan payment assistance. 

[oneal-sheila3]

I've already talked to my employer- the government and they won't help me. 

[Hal_Al]

What do they tell you? If your employer has set up a qualified 127 plan, there's no reason why they can't do the W-2 correctly. 

the IRS has instructions on what to do if you receive an incorrect W-2 and the employer is uncooperative: https://www.irs.gov/faqs/irs-procedures/w-2-additional-incorrect-lost-non-receipt-omitted/w-2-additi...

[oneal-sheila3]

They didn't tell me much of anything. Working for a government agency adds a more complicated layer to resolving this issue. My agency won't take responsibility for helping resolve anything, because we are paid through DFAS (another government agency). Thank for the information, but it looks like I will just be over taxed in the end and won't really be able to resolve anything.