Thanks so much for your response. I'm really at a loss. The full amount is in Box 14 on my W2. I received the following notice from my employer:
Background
[...] However, as a result of the [...] CARES Act (Section 2206, Exclusion of Certain Employer Payments of Student Loans) and subsequent Consolidated Appropriations Act, 2021 (Section 120, Exclusion for Certain Employer Payments of Student Loans), Internal Revenue Code 127 (IRC 127) was expanded to include student loans in the definition for educational assistance and authorized relief of taxes related to some educational assistance.
What does this mean for you?
Up to $5,250 of employer payments of student loans is non-taxable in calendar year 2021, for both payroll and income tax purposes. This benefit only applies to student loan payments made after December 31, 2020 but before January 01, 2026. Only the [employer student loan payment] contribution amount in excess of $5,250 will be counted as taxable income and included in your federal taxable gross wages.
The table below specifies the tax treatment applied to your 2021 [employer student loan] payment:
Lender Information | | |
Total Student Loan Benefit | $ XYZ |
Lender | Name of Lender |
Total amount sent to Lender | $ QRS |
Date amount sent to Lender | MM/DD/2021 |
Federal Income Tax |
Federal taxation of the total amount: | |
Non-Taxable | Amount no taxes were withheld | $ 5,250.00 |
Taxable | Amount taxes were withheld | $ XYZ - $5,250 |
