CARES Act Included Tax Code Change That Could Help Millions With Student Loan Debt
NORTH TEXAS (CBSDFW.COM) — Financially, it's been a hard year for a lot of North Texans. Now, there are changes to the tax code that could put extra money in your pocket – as long as you know about them.
CBS 11 iTeam reporter Brian New is looking at top tax changes.
When the Coronavirus Aid, Relief, and Economic Security Act [CARES Act] was passed in the Spring of 2020 stimulus checks and added unemployment benefits grabbed the headlines, but what was often overlooked was a change aimed at helping the millions of Americans with student loan debt.
Yes, tax-free student loan payments.
Starting in 2020 employers could make a tax-free contribution of up to $5,250 a year to their employees student debt and employees don't have to pay taxes on those payments.
The new tax incentive is good through the year 2025 and tax advisors say it is just one of dozens of tax changes this year.
"For a lot of taxpayers 2020 is going to be one of the most complex years they've ever had … so much happened in one year and then we got some tax benefits in the tax codes at the end of the year," said Dallas tax advisor Bill Dendy, CPA.
After the deadly winter storms that moved through Texas in February, the IRS is giving all Texas residents and businesses an additional two months to file their federal income taxes. This means Texans now have until June 15 to file their returns or pay what they owe.
