PLEASE BE AWARE that there is a difference between Box 1 and Box 14 on your W-2
The advice ThomasM125 gave is great IF YOU NEED TO SUBTRACT THE AMOUNT OUT OF BOX 1.
I do not think you need to subtract it out of Box 1.
I think only the excess is in Box 1 as it should be.
Box 14 is for your information only.
I could be wrong, you might want to check with your employer and the payroll department, but what I am hearing is this:
Your employer paid 10,000 towards your student loan
So that amount is in Box 14 for your information.
Only 5,250 can be tax-free so they had to add the excess, in this case 4,750 as taxable income; Therefore 4,750 is included in Box 1 on your W-2
If this is correct, NO ADJUSTMENT NEEDS TO BE MADE.
@jdp2102
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
