Does student loan interest reduce taxable income?

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Roderick Fritsch asked a question: Does student loan interest reduce taxable income?
Asked By: Roderick Fritsch
Date created: Mon, Nov 23, 2020 6:49 PM
Date updated: Tue, Oct 18, 2022 4:56 AM

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Video answer: Reduce your education loan interest rate to 6.33%

Reduce your education loan interest rate to 6.33%

Top best answers to the question «Does student loan interest reduce taxable income»

1. You can deduct student loan interest from your income. If you paid interest on student loans last year, you can lower your taxable income by up to $2,500… The deduction can lower your taxable income by a maximum of $2,500, which gets you $625 back on your taxes if you're in the 25% tax bracket.

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You can deduct student loan interest from your income. If you paid interest on student loans last year, you can lower your taxable income by up to $2,500. Student loan borrowers can deduct the...

Student loan interest deduction. If you pay interest on either private or federal student loans, the student loan interest deduction will let you reduce your taxable income by up to $2,500 annually.

The student loan interest tax deduction can be a great way to reduce your taxable income and lower your tax bill. It’s best used in conjunction with other tax breaks, so consider consulting a tax professional to find out how to best take advantage of all your options.

The maximum student loan interest deduction you can claim is $2,500 as of the 2020 tax year, and it might be less. It can be limited by your income. The deduction is reduced for taxpayers with modified adjusted gross incomes (MAGIs) in a certain phase-out range and is eventually eliminated entirely if your MAGI is too high.

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