The cares act allows an employer to pay $5250.00 towards student loan debt, tax free for their employees.      They did not run this thru a W-2, instead they issued the employee a 1099 misc. with box 3 other income filled in.     What is the best way to handle this on the return?   I need to claim the 1099 misc. amount as income, so that the IRS does not send a letter, but also need to indicate that $5250 of this amount should be tax free.   I don't see an input screen for tax free education payments.     

Also, would the excess over the $5250 be subject to Self employment tax?  

Thank you in advance for your help.