Video answer: Student loan interest could be tax deductible
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Is student loan interest tax deductible?
- Interest Paid on Student Loans Is Still Tax Deductible. The student loan interest tax deduction is one of those advantageous "above the line" deductions that you can claim without itemizing. It's tucked into the adjusted gross income (AGI) section of Form 1040.
Video answer: Are student loan payments tax deductible?
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Unfortunately, not all student loan borrowers will qualify for the student loan interest deduction. To know whether you qualify, you can start by finding your Modified Adjusted Gross Income (MAGI) from last year. You might be thinking that the student loan interest deduction is a small silver lining when you’re making hefty debt payments.
Depending on your income and loans, you may be able to deduct as much as $2,500 of your student loan interest from your taxable income.
The student loan interest deduction may be available to you if you meet certain key criteria. According to the IRS, student loan interest is tax deductible if: You took out the student loan for yourself, your spouse or any person who was a dependent at the time when you borrowed. The deduction is available for both federal loans and private loans.
The student loan interest deduction allows you to deduct up to $2,500 of the interest you paid on a loan for higher education. You don't have to fill out a Schedule A. The deduction can be claimed...