CARES Act and Employer Student Loan Contributions

[jclark0213]

I am interested to utilizing this temporary avenue to supplement my student loan repayment as I am full-time W2 employee but also have a sole member LLC in which I am the only the only 1099 employee. Am I able to create a qualified plan for loan assistance in my LLC for myself that dictates a $5250 tuition assistance for every tax year (until 2025) to take the write off and pay my student loans without paying the income tax on these funds?

My LLC gets paid when I work at my 1099 job and the funds just stay in my business account. I take no draw of any kind or regular salary. I am hoping to use the qualified loan contribution to minimize tax burden and pay off student loans with tax free income. 

I don't qualify for any student loan interest write off due to income level. 

[abctax55]

You’ve come to an Intuit site supporting tax professionals, and you may be looking for support as an individual taxpayer. Please visit the TurboTax Help site for support.
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But here's a bone....

"....a sole member LLC in which I am the only the only 1099 employee."

1099 and 'employee' are NOT interchangeable terms; basically they are opposites.  You can't be an employee of yourself (of your SMLLC).  I'm hoping you didn't jump thru the hoops to file payroll tax returns/W-2's etc?????

So, no.... your clever strategy is not allowed.

[qbteachmt]

You’ve come to a Peer User community for Intuit Income Tax Preparation products supporting tax preparation professionals using ProSeries, Proconnect and Lacerte Tax Preparation programs. You don't seem to have a software question.

You seem to be lost on the internet.

Your sign in user info here is the same one you can use over at the TurboTax forum, where Intuit maintains a forum for community issues (people as opposed to programs). But be careful, because just like your confusion, you are going to find many people have their management concepts wrong for what they want to do vs what is allowed.

Which is why you hire a professional for, at the least, one overview session for learning how to Be The Boss of your own business. Because you are never working at your 1099 job. You are running your business. It doesn't matter if you leave that money there or take it; that's why it's called a Pass Through Entity. You are always paying taxes on the taxable income, if you are doing that right. So, use the business profit to pay down your debt. You signed up for it, you benefited from it, you owe it.