My daughter came to me with a question. As a defrocked accountant (not really, I got the degree but bailed on the CPA exam) I think I know the answer but I thought I’d put it out here in case anyone knows better.
She has about $60K remaining of her student loans. She’s doing well at work, and her boss offered to pay off her student loans in lieu of a raise for the next few years. Her boss hates taxes and is trying to come up with some kind of scheme such as calling it a loan to avoid them. I told her than any kind of loan payoff, forgiveness, etc. and even if the payment was made directly to the student loan company it would still be considered income to her by the IRS. She can’t receive it in portions as a “gift” as she is already in an employer-employee relationship. Given that this would put her well into the 24% bracket, the taxes would be a lot of money.
She wasn’t particularly happy with my pronouncement so I told her I’d ask here. Does anyone have any thoughts beyond what I’ve told her?
Submitted March 26, 2021 at 09:19PM by loroller https://ift.tt/3su9qFY
