With the new CARES Act, employers can pay up to $5,250 toward student loans and this amount is tax free to the employee.
Hypothetically, if this amount is paid direct to the employee (taxes and retirement are also taken out of the lump bonus) and the employee takes $5,250 and pays that to the loan, can the employee then deduct that amount on their taxes when they file 2020? Or is this supposed to be paid out a different way?
Thanks!
