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I believe you would still be taxed on that amount regardless. I don’t think payment of student loans is an eligible pre-tax deduction from your paycheck. So you would just be having them pay your loans directly but still being taxed on what ever they pay. So it’s in theory less money to you and the same amount of taxes.
I could be wrong tho
It would be great if they could make you a low-interest, deferred-payment loan.
My firm waived 30 K of law school debt a year when you were an associate. This was taxable at the end of the year.
My firm has a benefit like this but only $5,250, which I think is the limit for it to be tax-free
This is what I was looking for but it appears for a limited time
Why wouldn't you pay taxes on the amount going towards your student loans? It's income, even if it doesn't go directly into your pocket. You're receiving a benefit from these funds.
Lmao I can’t believe how serious the parent comment has gotten. It was just a hypothetical. My question was whether your employer could pay any portion of your student loans pre tax. This was answered in another comment, which apparently they can up to a certain amount. Have a good day tool
I’m interested in the real answer to this question. I’ve contemplated the same structure.
lol. This is like if you asked your firm to just pay your rent and groceries directly to avoid taxes. Doesn’t work. It would be taxable income.
Fair enough. I looked up that provision and it allows $5K per year and the program expires this year. So you could theoretically get your firm to set up this program (for everyone at the company—not a simple task) and they’d theoretically be able to pay $5K of your loans pre-tax, saving you less than $2K. Then they would not be able to do it in 2026 onward.
Tell me you don't know tax law without telling me you don't know tax law
Okay just because you didn't take it and don't many people that did doesn't mean many people didn't take. What kind of logic you working with? I took it, in a class of 30 people, a class that is offered every semester of every year at my one school. Just in the three years that I attended law school 180 people took the course... 30 of which I knew personally because i was in class with them. Another 30 for the second semester. That's roughly 26% of my graduating class. The "i don't see it so it doesn't exist" argument is pretty juvenile. Sometimes I wonder how people in this bowl are even attorneys with their lack of basic logic and analytical skills.
Yeah it wouldn’t be pre-tax. Consult a tax lawyer at your firm.
There are countries in which tuition is 100% tax deductible… just saying.